document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1172736>Question 1172736</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Using daily compounding, calculate the compound amount (in $) of a $7,000 investment for each of the three CDs.\r<BR>\n" );
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document.write( "The First National Bank is offering a 5 year CD at 3% interest.<BR>\n" );
document.write( "The Second National Bank is offering a 5 year CD at 4% interest.<BR>\n" );
document.write( "The Third National Bank has a 5 year CD at 4.5% interest.\r<BR>\n" );
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document.write( "I used the formula A=P (1 + i/365)^n<BR>\n" );
document.write( "I got 7065.31 and 7002.88 for the first national bank but they were marked wrong. Is there another formula I should follow?\r<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 #797856 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52787)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><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=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=797856\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .\r<BR>\n" );
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document.write( "For daily compounding, &nbsp;the &nbsp;CORRECT &nbsp;formula is\r<BR>\n" );
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document.write( "    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%2A%281+%2B+i%2F365%29%5E%28365%2An%29 ALIGN=MIDDLE  ALT=\"P%2A%281+%2B+i%2F365%29%5E%28365%2An%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >,\r<BR>\n" );
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document.write( "where &nbsp;n &nbsp;is the number of years.\r<BR>\n" );
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document.write( "You used &nbsp;INCORRECT &nbsp;formula ---- THEREFORE, &nbsp;you need &nbsp;RE-CALCULATE &nbsp;everything, &nbsp;using the correct formula.\r<BR>\n" );
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document.write( "------------\r<BR>\n" );
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document.write( "See the lessons\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compound interest percentage problems</A> \r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=https://www.algebra.com/algebra/homework/logarithm/Problems-on-discretely-compound-accounts.lesson>Problems on discretely compound accounts</A> \r<BR>\n" );
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document.write( "in this site, &nbsp;and learn the subject from there.\r<BR>\n" );
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document.write( "After reading this lesson, you will tackle such problems on your own without asking for help from outside.\r<BR>\n" );
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document.write( "Also, &nbsp;you have this free of charge online textbook in ALGEBRA-I in this site\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson>ALGEBRA-I - YOUR ONLINE TEXTBOOK</A>.\r<BR>\n" );
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document.write( "The referred lesson is the part of this online textbook under the topic \"<U>Logarithms</U>\".\r<BR>\n" );
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document.write( "Save the link to this online textbook together with its description\r<BR>\n" );
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document.write( "Free of charge online textbook in ALGEBRA-I<BR>\n" );
document.write( "https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson\r<BR>\n" );
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document.write( "to your archive and use it when it is needed.\r<BR>\n" );
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document.write( "Happy learning (!)\r<BR>\n" );
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