document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1102445>Question 1102445</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How much would you need to deposit in a account now in order to have $2000 in the account in 10 years? Assume the account earns 8% tnterest compounded monthly. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #717197 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=717197\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> This is the compound interest formula<BR>\n" );
document.write( "P=Po(1+rate/12)^120, the rate divided by 12 months in a year, and 120 compoundings.<BR>\n" );
document.write( "2000=Po(1+(0.08/12))^120=Po*2.2196, but don't round.  Divide both sides by the 2.2196 and Po=$901.05<BR>\n" );
document.write( "Rule of 72 would suggest doubling in 72/8 or 9 years, and this has doubled and a little more, which is consistent. </SPAN>\n" );
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