document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1121909>Question 1121909</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You deposit $500 each month into an account earning 2% interest compounded monthly.\r<BR>\n" );
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document.write( "a) How much will you have in the account in 15 years?\r<BR>\n" );
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document.write( "b) How much total money will you put into the account?\r<BR>\n" );
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document.write( "c) How much total interest will you earn?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #737912 by </B><A HREF=/tutors/aboutme.mpl?userid=solver91311><B>solver91311(24713)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solver91311><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=solver91311><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=737912\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font face=\"Times New Roman\" size=\"+2\">\r<BR>\n" );
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document.write( "Depends.\r<BR>\n" );
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document.write( "If you make the first deposit at the END of the first compounding period (Future Value of Annuity, FVA) then the formula is:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FVA\ =\ P\[\frac{\(1\,+\,r\)^n\,-\,1}{r}\]\">\r<BR>\n" );
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document.write( "Where <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large P\"> is the periodic payment, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large r\"> is the interest rate per compounding period expressed as a decimal, and <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large n\"> is the number of compounding periods.\r<BR>\n" );
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document.write( "On the other hand, if your payment is made at the beginning of the first compounding period (Future Value of Annuity Due, FVAD), then the formula is:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FVAD\ =\ \(1\,+\,r\)\(P\[\frac{\(1\,+\,r\)^n\,-\,1}{r}\]\)\">\r<BR>\n" );
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document.write( "In your case, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large P\ =\ 500\">, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large r\ =\ \frac{0.02}{12}\">, and <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large n\ =\ 15\ \times\ 12\">.  It is up to you to do the arithmetic after you decide which formula to use.\r<BR>\n" );
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document.write( "Total of deposits for <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE FVA\"> is <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE Pn\">.  For <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE FVAD\"> it is <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE P(n\,+\,1)\">\r<BR>\n" );
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document.write( "Total interest earned is either FVA minus Deposits or FVAD minus Deposits.\r<BR>\n" );
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document.write( "It is up to you to do the arithmetic after you decide which formula to use.<BR>\n" );
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document.write( "John<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE e^{i\pi}\ +\ 1\ =\ 0\"><BR>\n" );
document.write( "My calculator said it, I believe it, that settles it<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large \ \\r\"> </SPAN>\n" );
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