document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1099890>Question 1099890</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Giac collected money in his piggy bank until he was 10 years old. On his birthday, he deposited all $213.45 in the bank. His account earned 9% interest, compounded quarterly. On his 18th birthday, Giac took all of his money out to help buy a car. How much money was in the account at that time?<BR>\n" );
document.write( "This is an applied problem using the rate of growth.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #714422 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=714422\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> on his 10th birthday, he deposited 213.45 in the bank.<BR>\n" );
document.write( "his account earned 9% per year compounded quarterly.<BR>\n" );
document.write( "on his 18th birthday, he took the money out to help buy a car.\r<BR>\n" );
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document.write( "his money was in the bank for 8 years.\r<BR>\n" );
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document.write( "9% per year is equal to 9/100 per year = .09 per year.\r<BR>\n" );
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document.write( "time periods are in months because the interest rate is compounded monthly, therefore:\r<BR>\n" );
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document.write( "interest rate per month = .09/12 = .0075 per month.<BR>\n" );
document.write( "number of months = 8 * 12 = 96 months.\r<BR>\n" );
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document.write( "formula is f = p * (1+r)^n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value = 213.45<BR>\n" );
document.write( "r is the interest rate per month = .0075 per month.<BR>\n" );
document.write( "n is the number of months = 96 months.\r<BR>\n" );
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document.write( "formula becomes:\r<BR>\n" );
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document.write( "f = 213.45 * (1.0075)^96\r<BR>\n" );
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document.write( "solve for f to get f = 437.3422362.\r<BR>\n" );
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document.write( "round to 2 decimal places to get f = $437.34.\r<BR>\n" );
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document.write( "you can use your calculator to confirm this is true, based on the future value of a present amount formula shown above.\r<BR>\n" );
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document.write( "there are other financial formulas you might find useful along with a reference to a financial calculator that should be helpful to confirm you did the problems correctly.\r<BR>\n" );
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document.write( "they're contained in the following reference.\r<BR>\n" );
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