document.write( "Question 1157423: You decide to contribute to a mutual fund that averages 3.4% return per year. If you contribute $150 quarterly.
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Algebra.Com's Answer #780292 by ikleyn(52790)\"\" \"About 
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document.write( "It works as a classic Ordinary Annuity saving plan with the annual deposit of 150*4 = 600 dollars, compounded annually at 3.4%.\r\n" );
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document.write( "The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    (1)\r\n" );
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document.write( "where  FV is the future value of the account;  P is the annual payment (deposit); r is the annual percentage rate presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years, in this case).\r\n" );
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document.write( "Under the given conditions, P = 600;  r = 0.034;  n = 10.  So, according to the formula (1), you get at the end of the 10-th year\r\n" );
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document.write( "    FV = \"600%2A%28%28%281%2B0.034%29%5E10-1%29%2F0.034%29\" = $7006.39 dollars.\r\n" );
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document.write( "Note that you deposit only  10*$600 = $6,000.  The rest, $1006.39 is the interest, which the account earns/accumulates in 10 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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