document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1202636>Question 1202636</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Calculate the total interest earned for the investment below.\r<BR>\n" );
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document.write( "Principal = $8200<BR>\n" );
document.write( "Rate of Compound Interest per Year = 2.8%<BR>\n" );
document.write( "Compounding Period = quarterly<BR>\n" );
document.write( "Time = 15 years </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #837584 by </B><A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><B>math_tutor2020(3817)</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=837584\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font color=black size=3><BR>\n" );
document.write( "Compound interest formula<BR>\n" );
document.write( "A = P*(1+r/n)^(n*t)\r<BR>\n" );
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document.write( "where,<BR>\n" );
document.write( "A = final amount<BR>\n" );
document.write( "P = deposit<BR>\n" );
document.write( "r = annual interest rate in decimal form<BR>\n" );
document.write( "n = compounding frequency<BR>\n" );
document.write( "t = number of years\r<BR>\n" );
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document.write( "In this case<BR>\n" );
document.write( "P = 8200<BR>\n" );
document.write( "r = 0.028<BR>\n" );
document.write( "n = 4<BR>\n" );
document.write( "t = 15\r<BR>\n" );
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document.write( "A = P*(1+r/n)^(n*t)<BR>\n" );
document.write( "A = 8200*(1+0.028/4)^(4*15)<BR>\n" );
document.write( "A = 8200*(1.007)^(60)<BR>\n" );
document.write( "A = 12461.8375505852<BR>\n" );
document.write( "A = 12461.84<BR>\n" );
document.write( "This is the final balance.\r<BR>\n" );
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document.write( "Subtract off the deposit to determine the interest earned.<BR>\n" );
document.write( "i = A - P<BR>\n" );
document.write( "i = 12461.84 - 8200<BR>\n" );
document.write( "i = 4261.84\r<BR>\n" );
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document.write( "Answer: $4261.84<BR>\n" );
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