document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1098354>Question 1098354</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Haley invested $2,000.00 in a 36-month certificate of deposit (CD) that earned 7% annual simple interest. When the CD matured she rolled the entire amount into a mutual fund that had growth equivalent to 14% compounded annual. How much was the mutual fund worth after 9 years? Round your answer to 2 decimal places and separate the thousands by a comma. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #712726 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=712726\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> she put 2000 into a cd that earned 7% annual interest simple for 36 months.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "formula for future value of an investment at simple interest is:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "f = p * (1 + r*n)\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "formula becomes:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "f = 2000 * (1 + .07*3)\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that's if the time periods are expressed in years.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "if the time periods are expressed in months, then the interest rate is per month and the number of time periods is in months.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "formula would then becomes f = 2000 * (1 + .07/12 * 36)\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the answer will be the same.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "to confirm, use the two formulas to get:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "f = 2000 * (1 + .07 * 3) = 2420.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "f = 2000 * (1 + .07/12 * 36) = 2420.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "at the end of the 3 year period, the balance is invested at 14% interest per year compounded annually for 9 years.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the formula there is f = p * (1+r)^n\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time period.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "formula becomes f = 2420 * (1.14)^9\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "solve for f to get f = 7869.715421\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "round to 2 decimal and include commas and the answer becomes 7,869.72\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );