document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1183010>Question 1183010</A>: <I><SPAN STYLE=\"word-break: break-all;\"> On average, it needs 250,000 dollars per year and an additional 600,000 dollars every 4 years for major repairs to maintain a certain three-storey office building. How much must be paid now to take care of these payments on a bank that offers 8% per year?\r<BR>\n" );
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document.write( "|I get confused on the interest rate, what will I use if solving for the \"every four years\"? Please help me.. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #813156 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=813156\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> every year you divide 250,000 by 1.08 raised to the power of the (year minus the start year).\r<BR>\n" );
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document.write( "every 4 years, you divide 600,000 by 1.08 raised to the power of the (year minus the start year).\r<BR>\n" );
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document.write( "example:\r<BR>\n" );
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document.write( "in year 1, 250,000 is divided by 1.08^1.<BR>\n" );
document.write( "in year 2, 250,000 is divided by 1.08^2.<BR>\n" );
document.write( "in year 3, 250,000 is divided by 1.08^3.<BR>\n" );
document.write( "in year 4, 250,000 is divided by 1.08^4\r<BR>\n" );
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document.write( "in addition, .....\r<BR>\n" );
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document.write( "in year 4, 600,000 is divided by 1.08^4.\r<BR>\n" );
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document.write( "note that:\r<BR>\n" );
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document.write( "1.08 - 1 = .08<BR>\n" );
document.write( ".08 * 100 = 8%.\r<BR>\n" );
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document.write( "1.08^4 = 1.36048896<BR>\n" );
document.write( "1.36048896 - 1 = .36048896<BR>\n" );
document.write( ".36048896 * 100 = 36.048896%\r<BR>\n" );
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document.write( "you do that for the number of years indicated.<BR>\n" );
document.write( "they should be in increments of 4, since there is that additional charge every 4 years.\r<BR>\n" );
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document.write( "over 20 years, your present value will be equal to $3,761,847.55.\r<BR>\n" );
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document.write( "the following spreadsheet shows the calculations.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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