document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1160654>Question 1160654</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose you deposit $1000 in an account with an annual interest rate of 10% compounded quarterly. Use the formula A=P(1+r/n)^nt and round each answer to 2 decimal places, if necessary.\r<BR>\n" );
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document.write( "A. Find an equation that gives the amount of money in the account after <BR>\n" );
document.write( "t years.\r<BR>\n" );
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document.write( "B. Find the amount of money in the account after 9 year.\r<BR>\n" );
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document.write( "C. How many years will it take for the account to contain $2000? \r<BR>\n" );
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document.write( "D. If the same account and interest were compounded continuously, how much money would the account contain after 9 years? <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 #784089 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=784089\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A. A=1000(1+(.1/4))^4t units dollars<BR>\n" );
document.write( "B. when t=9 A=1000(1.025)^36=$2432.54<BR>\n" );
document.write( "C. when A=2000, then 2=(1+.025)^4t<BR>\n" );
document.write( "ln2=4t* ln (1.025)<BR>\n" );
document.write( "t=ln2/4 ln(1.025)<BR>\n" );
document.write( "t=7.018 years or 7 years\r<BR>\n" );
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document.write( "Rule of 70 says doubling time in years=70/rate in percent, so 7 years would be expected.\r<BR>\n" );
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document.write( "D. A=1000e^(rt)=1000*e(.10*9)<BR>\n" );
document.write( "=$2459.60 This is a little above the quarterly amount, and that is what would be expected.\r<BR>\n" );
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