document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1116427>Question 1116427</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 3. Use a financial  calculator or computer software program to answer the following questions :\r<BR>\n" );
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document.write( "A). What would  be the  future  value of  $ 19,378 invested now if the money remains deposited for eight years, the annual interest rate is 18 percent, and the  interest on the investment is compounded semi-annually? \r<BR>\n" );
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document.write( "B). How would your answer for (A) change if quarterly compounding were used? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #731528 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=731528\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> set present value = 19378<BR>\n" );
document.write( "set number of time periods = 8 * 2 = 16<BR>\n" );
document.write( "set interest rate per time period = 18/2 = 9%<BR>\n" );
document.write( "set future value = 0<BR>\n" );
document.write( "set payment per time period = 0<BR>\n" );
document.write( "leave payments at end or beginning of time period alone since you are not doing payments.<BR>\n" );
document.write( "click on future value to get future value = 76936.59\r<BR>\n" );
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document.write( "that was for semi-annual payments.<BR>\n" );
document.write( "for quarterly payments, do the following:<BR>\n" );
document.write( "set present value = 19378<BR>\n" );
document.write( "set number of time periods = 8 * 4 = 32 *****<BR>\n" );
document.write( "set interest rate per time period = 18/4 = 4.5% *****<BR>\n" );
document.write( "set future value = 0<BR>\n" );
document.write( "set pa7ment per time period = 0<BR>\n" );
document.write( "leave payments at end or beginning of time period along since you are not doing payments.<BR>\n" );
document.write( "click on future value to get future value = 79255.65\r<BR>\n" );
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document.write( "it is to be expected that the future value will be higher with quarterly compounding than with semi-annual compounding since you are earning interest on interest and the effective interest rate per year is higher.\r<BR>\n" );
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document.write( "with semi-annual compounding, your effective annual interest rate is (1 + .18/2) ^ 2 - 1 = .1881 * 100 = 18.81%.\r<BR>\n" );
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document.write( "with quarterly compounding, your effective annual interest rate is (1 + .18/4) ^ 4 - 1 = .192518601 * 100 = 19.2518601%.\r<BR>\n" );
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document.write( "the online calculator i used is at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>\r<BR>\n" );
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document.write( "here are my inputs and outputs for semi-annual compounding.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/050601.jpg\" alt = \"$$$\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/050602.jpg\" alt = \"$$$\" >\r<BR>\n" );
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document.write( "here are my inputs and outputs for quarterly compounding.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/050603.jpg\" alt = \"$$$\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/050604.jpg\" alt = \"$$$\" > </SPAN>\n" );
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