document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1140237>Question 1140237</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Here is the formula used to find compound interest. In this situation, interest is compounded once a year:       <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%281+%2B+r%29%5Et+ ALIGN=MIDDLE  ALT=\"+A+=+P%281+%2B+r%29%5Et+\"   DISABLED_style= \"max-width:90%; height:auto;\" >         How would the formula change if the interest were compounded 4 times in a year?  Explain your changes.\r<BR>\n" );
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document.write( "A = Final Amount<BR>\n" );
document.write( "P = Principal Amount (money deposited)<BR>\n" );
document.write( "r = Annual rate on interest<BR>\n" );
document.write( "t = Time (number of years) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #760724 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=760724\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the formula as you show it is:\r<BR>\n" );
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document.write( "A = P * (1 + r) ^ t\r<BR>\n" );
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document.write( "if the interest were compounded 4 times a year, the formula would become:\r<BR>\n" );
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document.write( "A = P * (1 + r/4) ^ (t * 4)\r<BR>\n" );
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document.write( "the annual interest rate is divided by 4 to get the quarterly interest rate.\r<BR>\n" );
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document.write( "the number of years is multiplied by 4 to get the number of quarters.\r<BR>\n" );
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