document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1129288>Question 1129288</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Edgar accumulated $7,000 in credit card debt. If the interest rate is 30% per year, and he does not make any payments for 2 years, how much will he owe (in dollars) on this debt in 2 years by each method of compounding? (Simplify your answers completely. Round your answers to the nearest cent.)\r<BR>\n" );
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document.write( "(a)compound quarterly<BR>\n" );
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document.write( "(b)compound monthly<BR>\n" );
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document.write( "(c)compound continuously<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 #745849 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=745849\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Edgar accumulated $7,000 in credit card debt. If the interest rate is 30% per year, and he does not make any payments for 2 years, how much will he owe (in dollars) on this debt in 2 years by each method of compounding? (Simplify your answers completely. Round your answers to the nearest cent.) <BR>\n" );
document.write( "(a)compound quarterly<BR>\n" );
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document.write( "I(t) = P(1+(r/n))^(nt)-P<BR>\n" );
document.write( "I(2) = 7000(1+(0.30/4))^(4*2) - 7000<BR>\n" );
document.write( "I(2) = $5484.34<BR>\n" );
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document.write( "(b)compound monthly (n = 12)<BR>\n" );
document.write( "I(2) = 7000(1+0.3/12))^(12*2)-7000 = $5661.08<BR>\n" );
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document.write( "(c)compound continuously<BR>\n" );
document.write( "I(2) = 7000*e^(0.3*2) - 7000<BR>\n" );
document.write( "I(1) = $5754.83<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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