document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1140162>Question 1140162</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the interest rate of an account that has $12500 that will give $450.00 interest in 72 months </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #760661 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=760661\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 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 (per month in this problem)<BR>\n" );
document.write( "n is the number of time periods (number of months in this problem)\r<BR>\n" );
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document.write( "the present value in this problem is equal to 12500.<BR>\n" );
document.write( "the future value in this problem is equal to 12500 + 450 = 12950.<BR>\n" );
document.write( "n is equal to 72.<BR>\n" );
document.write( "r is what you want to find.\r<BR>\n" );
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document.write( "the formula becomes:\r<BR>\n" );
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document.write( "12950 = 12500 * (1 + r) ^ 72\r<BR>\n" );
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document.write( "divide both sides of this equation by 12500 to get:\r<BR>\n" );
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document.write( "12950 / 12500 = (1 + r) ^ 72\r<BR>\n" );
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document.write( "take the seventy second root of both sides of this equation and subtract 1 from both sides of this equation to get:\r<BR>\n" );
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document.write( "(12950 / 12500) ^ (1/72 - 1 = r\r<BR>\n" );
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document.write( "solve for r to get:\r<BR>\n" );
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document.write( "r = .0004913309946\r<BR>\n" );
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document.write( "that's the interest rate per month.\r<BR>\n" );
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document.write( "multiply that by 12 to get an annual interest rate of .005895971935.\r<BR>\n" );
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document.write( "that's equal to .5895971935%.\r<BR>\n" );
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document.write( "that's a little less than 6 tenths of a percent per year.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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