document.write( "Question 1093899: Please help me understand this
\n" ); document.write( "The formula when interest is compounded n time per year is A=p(1+r/n)nt \r
\n" ); document.write( "\n" ); document.write( "Where A is the accrued amount after t years, P is the starting principal, and r is the interest rate, expressed as a decimal, that is compounded n times a year. If you invest $1000 at an interest rate of 7%, and leave it there for 30 years, determine your ending balance if the interest is compounded.
\n" ); document.write( "1. Once a year 2. Twice a year
\n" ); document.write( "
\n" ); document.write( "

Algebra.Com's Answer #708510 by stanbon(75887)\"\" \"About 
You can put this solution on YOUR website!
The formula when interest is compounded n time per year is A=p(1+r/n)nt
\n" ); document.write( "Where A is the accrued amount after t years, P is the starting principal, and r is the interest rate, expressed as a decimal, that is compounded n times a year. If you invest $1000 at an interest rate of 7%, and leave it there for 30 years, determine your ending balance if the interest is compounded.
\n" ); document.write( "1. Once a year
\n" ); document.write( "A(t) = P(1+(r/n))^(nt)
\n" ); document.write( "Let t = 1
\n" ); document.write( "A(30) = 1000(1+(0.07/1))^(1*30)
\n" ); document.write( "A(1) = 1000(1.07)^30
\n" ); document.write( "------------------------
\n" ); document.write( "2. Twice a year
\n" ); document.write( "A(30) = 1000(1+(0.07/2))^(2*30)
\n" ); document.write( "A(30) = 1000(1.035)^60
\n" ); document.write( "--------------
\n" ); document.write( "Cheers,
\n" ); document.write( "Stan H.
\n" ); document.write( "------------
\n" ); document.write( "
\n" ); document.write( "
\n" );