document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1102444>Question 1102444</A>: <I><SPAN STYLE=\"word-break: break-all;\"> What principle will amount to 9,000 if invested at 4% compounded monthly for 6 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #717156 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=717156\">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( "you are given that:\r<BR>\n" );
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document.write( "f = 9000<BR>\n" );
document.write( "r = 4% per year compounded quarterly.<BR>\n" );
document.write( "n = 6 years.\r<BR>\n" );
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document.write( "your time periods will be in quarters and you need to use the rate as a decimal rather than as a percent.\r<BR>\n" );
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document.write( "your rate as a decimal = 4% / 100 = .04 per year.<BR>\n" );
document.write( "divide that by 12 to get a monthly rate of .04/12<BR>\n" );
document.write( "your number of quarters will be 6 * 12 = 72\r<BR>\n" );
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document.write( "you will get:\r<BR>\n" );
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document.write( "p = what you want to find<BR>\n" );
document.write( "f = 9000<BR>\n" );
document.write( "r = .04/12<BR>\n" );
document.write( "n = 72\r<BR>\n" );
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document.write( "your formula of f = p * (1+r) ^ n becomes:\r<BR>\n" );
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document.write( "9000 = p * (1 + .04/12) ^ 72\r<BR>\n" );
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document.write( "solve for p to get p = 9000 / ((1 + .04/12) ^ 72)\r<BR>\n" );
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document.write( "this results in p = 7082.476897\r<BR>\n" );
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document.write( "that's your principal.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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