document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1127645>Question 1127645</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Use the compound interest formula P = A(1 + i)^n, where A is the original value of an investment, i is the interest rate per compounding period, n is the total number of compounding periods, and P is the value of the investment after n periods.<BR>\n" );
document.write( "A financial advisor recommends that a client deposit $2600 into a fund that earns 7.5% annual interest compounded monthly. What will be the value of the investment after 3 years? Round to the nearest cent.<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 #744076 by </B><A HREF=/tutors/aboutme.mpl?userid=greenestamps><B>greenestamps(13200)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=greenestamps><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=greenestamps><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=744076\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <br><BR>\n" );
document.write( "You are given the formula; just plug in the numbers. Your calculator will give the same answer as mine.<br><BR>\n" );
document.write( "Pay close attention to the exact wording.<br><BR>\n" );
document.write( ">> 7.5%, or .075, is the annual interest rate; since interest is compounded monthly, the interest rate per period is .075/12 = .00625.<BR>\n" );
document.write( ">> Since n is the number of compounding periods, n is the number of months in 3 years.<br><BR>\n" );
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