document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1170325>Question 1170325</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Formulate a quadratic equation then answer what is asked in the problem.<BR>\n" );
document.write( "If John plans to put a Computer Sales and Services with printing station and applies for a loan of an amount P in pesos and r percent compounded annually to invest in his business, he believes that his business will grow to an amount A=P(1+r)² in two years. Supposed John wants his money amounting to Php200,000 to grow to Php228,980 in two years. At what rate must he invest his money?<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 #795210 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=795210\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the formula to use if 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 period.\r<BR>\n" );
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document.write( "in your problem, the formula becomes:<BR>\n" );
document.write( "228,980 = 200,000 * (1 + r) ^ 2\r<BR>\n" );
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document.write( "divide both sides of the equation by 200,000 and take the second root of both sides of the equation and subtract 1 from both sides of the equation, in that order, to get:\r<BR>\n" );
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document.write( "(228,980/200,000) ^ (1/2) - 1 = r<BR>\n" );
document.write( "solve for r to get:<BR>\n" );
document.write( "r = .07\r<BR>\n" );
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document.write( "he must invest 200,000 at 7% per year, compounded annually, to have 228,980 in 2 years.\r<BR>\n" );
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document.write( "200,000 * (1.07) ^ 2 = 228,980.\r<BR>\n" );
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document.write( "7% per year is your answer.\r<BR>\n" );
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