document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1169273>Question 1169273</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Pls answer my question\r<BR>\n" );
document.write( "\n" );
document.write( "Warren deposited his 12,000.00 in a local bank in 2019.<BR>\n" );
document.write( "If the bank offers 5% interest rate compounded annually, how much will be in his bank account in 2028?<BR>\n" );
document.write( "Suppose he will widthdraw the principal in 2028 and will leave the interest in his account, how much will the interest earn after 5 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #793994 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=793994\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the equation to use for this is f = p * (1 + r) ^ n<BR>\n" );
document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your time periods are in years.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "when p = 12000 and r = 5% per year / 100 = .05 per year and n = 2028 - 2019 = 9 years, then the equation becomes:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "f = 12000 *  (1 + .05) ^ 9 = 18615.93859\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "round to the nearest penny = 18615.94\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the interest earned is 6615.93859.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "round to the nearest penny = 6615.94.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that becomes the present value and n becomes 5 and r stays at .05 per year.<BR>\n" );
document.write( "the formula becomes:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "f = 6615.93859 * (1 + .05) ^ 5 = 8443.800443.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "round to the nearest penny to get 8443.80.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that's the interest after 5 years.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the additional interest earned is 8443.800443 minus 6615.93859 = 1827.861852.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "round to the nearest penny to get additional interest earned = 1827.86.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your questions was how much will the interest earn after 5 years.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "i believe the answer to that would be 1827.86.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "a summary of what happened.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "12000 grew to 18615.94 in 9 years.<BR>\n" );
document.write( "interest earned was 18615.94 - 12000 = 6615.94<BR>\n" );
document.write( "6615.94 grew to 8443.80 in 5 years.<BR>\n" );
document.write( "interest earned was 8443.80 - 6615.94 = 1827.86\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );