document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1177707>Question 1177707</A>: <I><SPAN STYLE=\"word-break: break-all;\">  steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and the interest is compounded monthly. steven also plans to contribute another $10,000 to the account one year (12 months) from now and another $20,000 to the account two years from now. how much will be in the account three years (36 months) from now? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #806809 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=806809\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the nominal interest rate is 12% per year.<BR>\n" );
document.write( "the effective interest rate is 1% per month.<BR>\n" );
document.write( "this yields an effective interest rate of ((1.01)^12 -1) * 100 = 12.68250301% per year.\r<BR>\n" );
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document.write( "your growth factor per year is (1.01)^12 = 1.1268250301.\r<BR>\n" );
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document.write( "you start with 10,000<BR>\n" );
document.write( "one year later, the value is equal to 10,000 * 1.1268250301 = 11,268.21503.<BR>\n" );
document.write( "you add 10,000 to that to get 21,268.21503.<BR>\n" );
document.write( "one year later, the value of that is equal to 21,268.21503 * 1.1268250301 = 23,965.59679.<BR>\n" );
document.write( "you add 10,000 to that to get 33,965.59679.<BR>\n" );
document.write( "one year later, the value of that is equal to 33,965.59679 * 1.1268250301 = 38,273.28462.\r<BR>\n" );
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document.write( "you could also have used a financial calculator to get the same results.<BR>\n" );
document.write( "one such calculator can be found at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a>\r<BR>\n" );
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document.write( "the inputs to this calculator are shown below.\r<BR>\n" );
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document.write( "the output from this calculator is shown below.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/032712.jpg\">\r<BR>\n" );
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document.write( "since you are dealing in years, then the effective interest rate per year had to be used.\r<BR>\n" );
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document.write( "that was calculated as follows:\r<BR>\n" );
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document.write( "the nominal interest rate per year is 12%.<BR>\n" );
document.write( "the effective monthly interest rate per year is 1%.<BR>\n" );
document.write( "the effective interest rate per year is (1.01)^12 = 1.12682503 -1 = .12682503 * 100 = 12.682503%.\r<BR>\n" );
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document.write( "ir equal to 12.682503 was entered as input to the problem as shown in the first display.\r<BR>\n" );
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document.write( "note that yearly payments were made at the beginning of each year.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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