document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1102443>Question 1102443</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the final amount of money in an account if $4,700 is deposited at 3% interest compounded quarterly (every 3 months) and the money is left for 6 years.<BR>\n" );
document.write( "The final amount is $_____. Round answer to 2 decimal places  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #717148 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=717148\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 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<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" );
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document.write( "there are 4 quarters in a year.\r<BR>\n" );
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document.write( "3% interest per year compounded quarterly gives you 3% / 4 = .75% interest rate per quarter.\r<BR>\n" );
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document.write( ".75% interest rate per quarter is equal to .0075 interest rate per quarter.\r<BR>\n" );
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document.write( ".0075 is the decimal equivalent of .75%.\r<BR>\n" );
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document.write( "the decimal equivalent of the percent is what is used in the formula.\r<BR>\n" );
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document.write( "6 years * 4 quarters per year = 24 quarters.\r<BR>\n" );
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document.write( "you are given that p = 4700\r<BR>\n" );
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document.write( "the equation of f = p * (1+r)^n becomes:\r<BR>\n" );
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document.write( "f = 4700 * (1.0075)^24\r<BR>\n" );
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document.write( "solve for f to get:\r<BR>\n" );
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document.write( "f = 5623.143588\r<BR>\n" );
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document.write( "if you are given the yearly interest rate and the number of years, then the formula can also be shown as:\r<BR>\n" );
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document.write( "f = p * (1 + r/c) ^ (nc)\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r/c is the yearly interest rate divided by the number of compounding periods per year.<BR>\n" );
document.write( "nc is the number of years multiplied by the compounding periods per year.\r<BR>\n" );
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document.write( "your formula would have become f = 4700 * (1 + .03/4) ^ (6*4)\r<BR>\n" );
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document.write( "this would have resulted in f = 5623.143588 which is the same answer as what was previously calculated above.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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