document.write( "Question 1134287: $24,000 is deposited for 5 years in an account earning 7% interest. (Round your answers to two decimal places.)\r
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\n" ); document.write( "\n" ); document.write( "Calculate the interest earned if interest is compounded quarterly. \n" ); document.write( "
Algebra.Com's Answer #751631 by Theo(13342)\"\" \"About 
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formula is f = p * (1 + r) ^ n\r
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\n" ); document.write( "\n" ); document.write( "f is the future value.
\n" ); document.write( "p is the present value.
\n" ); document.write( "r is the interest rate per time period.
\n" ); document.write( "n is the number of time periods.\r
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\n" ); document.write( "\n" ); document.write( "in your problem:
\n" ); document.write( "f is what you want to find.
\n" ); document.write( "p is 24,000
\n" ); document.write( "r is 7/5 per year divided by 100 = .07 divided by 4 quarters per year = .07/4 = .0175 per quarter.
\n" ); document.write( "n is 5 years * 4 quarters per year = 20 quarters.\r
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\n" ); document.write( "\n" ); document.write( "formula becomes f = 24,000 * (1 + .0175) ^ 20 which becomes f = 33,954.6767\r
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\n" ); document.write( "\n" ); document.write( "the interest earned is f - p = 33,954.6767 - 24,000 = 9,954.676698.\r
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\n" ); document.write( "\n" ); document.write( "round to two decimal laces and the solution is 9,954.68.\r
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