document.write( "Question 1201357: Suppose you could make a single \"lump sum\" deposit of $7694, in an investment that provides an Annual Percentage Rate(APR) of 3% compounded monthly. Determine the Future Value(FV) of the investment after 18 years. \n" ); document.write( "

Algebra.Com's Answer #835674 by ikleyn(52778) $\"\"$ $\"About$

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\n" ); document.write( "Suppose you could make a single \"lump sum\" deposit of $7694,
\n" ); document.write( "in an investment that provides an Annual Percentage Rate(APR) of 3% compounded monthly.
\n" ); document.write( "Determine the Future Value(FV) of the investment after 18 years.
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document.write( "Future value \r\n" );
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document.write( "    f = p*(1 + r)^n\r\n" );
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document.write( "    p is the principal amount,\r\n" );
document.write( "    r is the interest rate per time period,\r\n" );
document.write( "    n is the number of time periods.\r\n" );
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document.write( "In your problem:\r\n" );
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document.write( "    p = 7694  dollars,\r\n" );
document.write( "    r = 0.03/12 = 0.0025 per month,\r\n" );
document.write( "    n = 12*18 = 216 months.\r\n" );
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document.write( "Formula becomes f = .\r\n" );
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document.write( "Use your calculator to get  f = 13,194.06  dollars.    ANSWER\r\n" );
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\n" ); document.write( "\n" ); document.write( "To see many other similar (and different) solved problems on compounded interest accounts, look into the lesson\r
\n" ); document.write( "\n" ); document.write( " - Compounded interest percentage problems \r
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\n" ); document.write( "\n" ); document.write( "Learn the subject from there.\r
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