document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1150863>Question 1150863</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Dan invests £800 into his bank account. <BR>\n" );
document.write( "He receives 5% per year compound interest. <BR>\n" );
document.write( "How much will Dan have after 4 years? <BR>\n" );
document.write( "Give your answer to the nearest penny where appropriate.<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 #772402 by </B><A HREF=/tutors/aboutme.mpl?userid=greenestamps><B>greenestamps(13198)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=greenestamps><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=greenestamps><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=772402\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <br><BR>\n" );
document.write( "Note that you have received two different answers for your problem....<br><BR>\n" );
document.write( "The statement of the problem is not perfectly clear, so both answers should be considered correct.<br><BR>\n" );
document.write( "The statement \"He receives 5% per year compound interest\" only tells what the annual interest rate is; it does not specify how often the interest is compounded.  <br><BR>\n" );
document.write( "The lower figure in the answers you have received is for annual compounding; the higher figure is for continuous compounding.<br><BR>\n" );
document.write( "Note that, from a learning standpoint, the important thing for you to see is the difference between the formulas used for periodic compounding and continuous compounding.<br>\r<BR>\n" );
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