document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1139582>Question 1139582</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If $1,000 is deposited for 6 years in a savings account earning 3.6% interest compounded monthly, how much interest is earned during the sixth year? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #760063 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=760063\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the formula to use is f = p * (1 + r) ^ n.\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period<BR>\n" );
document.write( "n is the number of time periods\r<BR>\n" );
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document.write( "the investment period is 6 years * 12 = 72 months.<BR>\n" );
document.write( "the interest rate per month is 3.6% / 100 = .036 per year / 12 = .003 per month.\r<BR>\n" );
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document.write( "the formula becomes f = 1000 * (1 + .003) ^ 72 = 1240.701129.\r<BR>\n" );
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document.write( "that would be at the end of the sixth year.\r<BR>\n" );
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document.write( "at the end of the fifth year, the fomula becomes f = 1000 * (1 + .003) ^ 60.\r<BR>\n" );
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document.write( "solve for f to get f = 1196.894803.\r<BR>\n" );
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document.write( "subtract 1196.894803 from 1240.701129 and you get 43.80632619.\r<BR>\n" );
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document.write( "that's the interest earned during the sixth year.\r<BR>\n" );
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document.write( "this can be seen more clearly in the following spreadsheet printout.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2019/042231.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2019/042232.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( "the column headings are:\r<BR>\n" );
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document.write( "eom - end of month<BR>\n" );
document.write( "rembal - remaining balance<BR>\n" );
document.write( "int - interest earned from remaining balance in the previous month.<BR>\n" );
document.write( "cumint - cumulative sum of interest earned up to the end of month indicated.<BR>\n" );
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