document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1102728>Question 1102728</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If you deposit $1,000 into your bank account, how much will be in the account:<BR>\n" );
document.write( "A) After 5 years with 6% annual interest compounded quarterly?<BR>\n" );
document.write( "B) After 3 years with 4% annual interest compounded monthly?<BR>\n" );
document.write( "C) After 6 years with 5% annual interest compounded continuously?<BR>\n" );
document.write( "Show all work </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #717494 by </B><A HREF=/tutors/aboutme.mpl?userid=htmentor><B>htmentor(1343)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=htmentor><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=htmentor><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=717494\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The formula for computing compound interest is:<BR>\n" );
document.write( "A = P(1 + r/n)^(rt), where A = the accumulated amount, P = the initial principal, r = the annual rate, <BR>\n" );
document.write( "n = the number of times the interest is compounded per year, and t = the number of years.<BR>\n" );
document.write( "In all cases P = 1000<BR>\n" );
document.write( "A) In this case, r = 0.06, n = 4, and t = 5<BR>\n" );
document.write( "Putting in the numbers, we get A = $1346.86<BR>\n" );
document.write( "B) r = 0.04, n = 12, t = 3 -> A = $1127.27<BR>\n" );
document.write( "C) For continuous compounding, the formula is A = P*e^(rt)<BR>\n" );
document.write( "This gives A = 1000*e^(0.05*6) = $1349.86<BR>\n" );
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