document.write( "Question 1119409: sara invests $3000 in a mutual fund. on average the mutual fund earns 9%/yr compounded annually. how much interest can sara expect to earn after 10 yr \n" ); document.write( "

Algebra.Com's Answer #734950 by Theo(13342) $\"\"$ $\"About$

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f = p * (1 + r) ^ n\r
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\n" ); document.write( "\n" ); document.write( "f is the future value
\n" ); document.write( "p is the present value
\n" ); document.write( "r is the interest rate per time period.
\n" ); document.write( "n is the number of time periods.\r
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\n" ); document.write( "\n" ); document.write( "in your problem.\r
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\n" ); document.write( "\n" ); document.write( "p = 3000
\n" ); document.write( "r = .09 per year.
\n" ); document.write( "n = 10 years.\r
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\n" ); document.write( "\n" ); document.write( "solve for f to get f = 3000 * (1 + .09) ^ 10 = 7102.091024\r
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\n" ); document.write( "\n" ); document.write( "i = f - p\r
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\n" ); document.write( "\n" ); document.write( "i equals interest.
\n" ); document.write( "f = future value
\n" ); document.write( "p = present value\r
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\n" ); document.write( "\n" ); document.write( "in your problem:\r
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\n" ); document.write( "\n" ); document.write( "i = 7102.091024 - 3000 = 4102.091024\r
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\n" ); document.write( "\n" ); document.write( "you can combine the two formulas into one as shown below:\r
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\n" ); document.write( "\n" ); document.write( "i = p * (1 + r) ^ n - p\r
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