document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1122075>Question 1122075</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You deposit $400 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 20 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 #738161 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52915)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><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=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=738161\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .<BR>\n" );
document.write( "There are two types of saving accounts that work in accordance with this scheme:\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)  &nbsp;Ordinary Annuity saving plan, &nbsp;&nbsp;and\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)  &nbsp;Annuity Due saving plan.\r<BR>\n" );
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document.write( "Under Ordinary Annuity saving plan you deposit &nbsp;$400 &nbsp;at the end of each month;\r<BR>\n" );
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document.write( "under Annuity Due saving plan you deposit &nbsp;$400 &nbsp;at the beginning of each month.\r<BR>\n" );
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document.write( "I will give you the solution for the Ordinary Annuity plan only.\r<BR>\n" );
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document.write( "     (When such a problem comes without explicit naming of the plan, I am 100% sure that it means an Ordinary Annuity).\r\n" );
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document.write( "The formula is\r<BR>\n" );
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document.write( "    The future value in 20 years = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=400%2A%28%28%281%2B0.02%2F12%29%5E%2820%2A12%29-1%29%2F%28%280.02%2F12%29%29%29%29 ALIGN=MIDDLE  ALT=\"400%2A%28%28%281%2B0.02%2F12%29%5E%2820%2A12%29-1%29%2F%28%280.02%2F12%29%29%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=400%2A%28%28%281%2B0.02%2F12%29%5E240-1%29%2F%28%280.02%2F12%29%29%29%29 ALIGN=MIDDLE  ALT=\"400%2A%28%28%281%2B0.02%2F12%29%5E240-1%29%2F%28%280.02%2F12%29%29%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > = $117918.73.\r\n" );
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document.write( "    Notice that you deposit only $400*12*20 = $96,000.\r\n" );
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document.write( "    The rest is compound percents that the account earns in 20 years.\r\n" );
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document.write( "a) How much will you have in the account in 20 years?\r\n" );
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document.write( "$  $117,918.73.\r\n" );
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document.write( "b) How much total money will you put into the account?   \r\n" );
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document.write( "$  $96,000.\r\n" );
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document.write( "c) How much total interest will you earn?\r\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28%28117918.73+-+96000%29%2F96000%29%2A100 ALIGN=MIDDLE  ALT=\"%28%28117918.73+-+96000%29%2F96000%29%2A100\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 22.83%.\r\n" );
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document.write( "On both plans, you can learn and read from the lessons\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Ordinary-Annuity-saving-plans-and-geometric-progressions.lesson>Ordinary Annuity saving plans and geometric progressions</A>\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Annuity-due-saving-plans-and-geometric-progressions.lesson>Annuity Due saving plans and geometric progressions</A>\r<BR>\n" );
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document.write( "in this site.\r<BR>\n" );
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