document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1154339>Question 1154339</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 7. Due to a worldwide recession, Jennifer’s financial advisor informs her the account is no<BR>\n" );
document.write( "longer growing after 4 years. He recommends she move her money to an account that is more<BR>\n" );
document.write( "conservative and earns only 4% annually. Determine the amount in Jennifer’s investment account<BR>\n" );
document.write( "after 4 years(using the $50,000 investment), rounding to the nearest dollar. It may be helpful to<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 #776755 by </B><A HREF=/tutors/aboutme.mpl?userid=rothauserc><B>rothauserc(4718)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=rothauserc><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=rothauserc><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=776755\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> This looks like a simple interest problem<BR>\n" );
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document.write( "total interest(i) = prt, where p is the principal, r is the annual interest, t is time in years<BR>\n" );
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document.write( "i = 50000 * 0.04 * 4 = 8000<BR>\n" );
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document.write( "After 4 years, total amount is $58,000<BR>\n" );
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document.write( "If the problem meant to say that interest is compounded annually, then<BR>\n" );
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document.write( "Amount(A) = Principal(P) * (1 +r/n)^nt, where A is the total amount, P is the principal invested, n is the number of times the interest is compounded yearly, t is the time in years<BR>\n" );
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document.write( "For this problem, P = 50000, r = 0.04, n = 1, t = 4<BR>\n" );
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document.write( "A = 50000 * (1 +0.04)^4 = 58492.928 is approximately $58,493.<BR>\n" );
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