document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=69598>Question 69598</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Word problem:  The value of our money drops 6% each year.  If I had $10,000 five years ago, what would the value of that money be today?\r<BR>\n" );
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document.write( "I calculated the answer a couple of different ways (FV of presnt sum & and just used a calculator) and the answer was the same $7,339.04, but the answer in the book is $6,840.59.  Can someone please tell me how to get to this answer?  Thank you. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #72046 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=72046\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The value of our money drops 6% each year. If I had $10,000 five years ago, what would the value of that money be today? <BR>\n" );
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document.write( "At end of 1st year: 10000*0.94<BR>\n" );
document.write( "At the end of 2nd year: 10000*0.94*0.94<BR>\n" );
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document.write( "At the end of 5 years: 10000*0.94^5 = $7339.04 <BR>\n" );
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document.write( "You are right; the book answer is wrong.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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