document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1197236>Question 1197236</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Zhao wants $7,000 saved in 2 years to make a down payment on a house. How much money should she invest now at 6.1% compounded annually in order to meet her goal?<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 #830422 by </B><A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><B>math_tutor2020(3816)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=830422\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font color=black size=3><BR>\n" );
document.write( "Answer: <font color=red>$6218.24</font>\r<BR>\n" );
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document.write( "Work Shown:<BR>\n" );
document.write( "A = 7000 dollars is needed two years from now<BR>\n" );
document.write( "P = unknown deposit amount<BR>\n" );
document.write( "r = 0.061 = decimal form of the 6.1% interest rate<BR>\n" );
document.write( "n = 1 = to represent compounding annually<BR>\n" );
document.write( "t = 2 = number of years\r<BR>\n" );
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document.write( "Solve for P using the compound interest formula<BR>\n" );
document.write( "A = P*(1+r/n)^(n*t)<BR>\n" );
document.write( "7000 = P*(1+0.061/1)^(1*2)<BR>\n" );
document.write( "7000 = P*(1+0.061)^(2)<BR>\n" );
document.write( "7000 = P*(1.061)^(2)<BR>\n" );
document.write( "7000 = P*1.125721<BR>\n" );
document.write( "7000 = 1.125721P<BR>\n" );
document.write( "1.125721P = 7000<BR>\n" );
document.write( "P = 7000/1.125721<BR>\n" );
document.write( "P = 6218.23702320557  approximately<BR>\n" );
document.write( "P = <font color=red>6218.24</font>\r<BR>\n" );
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document.write( "Check:<BR>\n" );
document.write( "A = P*(1+r/n)^(n*t)<BR>\n" );
document.write( "A = 6218.24*(1+0.061/1)^(1*2)<BR>\n" );
document.write( "A = 7000.00335104<BR>\n" );
document.write( "A = 7000.00<BR>\n" );
document.write( "The answer is confirmed.<BR>\n" );
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