document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1127711>Question 1127711</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You plan to deposit $2,300 per year for 6 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today.\r<BR>\n" );
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document.write( "Please help me solve this problem. This is the breakdown but I dont understand FVAN=how to get this step\r<BR>\n" );
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document.write( "Ordinary annuity:\r<BR>\n" );
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document.write( "FVAN = PMT[((1 + I)N &#8210; 1)/I]\r<BR>\n" );
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document.write( "FVAN = $2,300[((1.02)6 – 1)/0.02]\r<BR>\n" );
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document.write( "FVAN = $2,300(6.30812)\r<BR>\n" );
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document.write( "FVAN = $14,508.68<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #744180 by </B><A HREF=/tutors/aboutme.mpl?userid=greenestamps><B>greenestamps(13216)</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=744180\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <br><BR>\n" );
document.write( "From the way you ask the question, I'm not sure what part of this you don't understand.<br><BR>\n" );
document.write( "For one thing, the N in the formula is an exponent:<BR>\n" );
document.write( "FVAN = PMT[((1 + I)^N - 1)/I]<BR>\n" );
document.write( "FVAN = $2,300[((1.02)^6 – 1)/0.02]<br><BR>\n" );
document.write( "Then the calculations and the answer are correct.<br><BR>\n" );
document.write( "If you are having trouble doing the calculations, it is quite possible that you have some parentheses missing, or in the wrong places.  I encourage students to do the calculations one step at a time.  For the given numbers....<br><BR>\n" );
document.write( "1+.02 = 1.02<BR>\n" );
document.write( "(1.02)^6 = 1.1261624<BR>\n" );
document.write( "(1.02)^6-1 = 1.1261624 - 1 = 0.1261624<BR>\n" );
document.write( "((1.02)^6-1)/.02 = 0.1261624/.02 = 6.308121<BR>\n" );
document.write( "2300*((1.02)^6-1)/.02) = 2300*6.308121 = 14508.68<br><BR>\n" );
document.write( "If your question is about the formula for the future value of an annuity, do an internet search on something like \"ordinary annuity formula derivation\". </SPAN>\n" );
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