document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=961371>Question 961371</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Alice Horn, owner of Horn's Ceramics Shop, loaned $12,000 to Pete Hall to help him open a deli. Pete plans to repay Alice at the end of 5 years with 8% interest compounded semiannually. How much will Alice receive at the end of 5 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #844618 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52781)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><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=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=844618\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .\r<BR>\n" );
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document.write( "Normally, &nbsp;a loan is re-paid using equal regular payment; &nbsp;so, &nbsp;this loan, <BR>\n" );
document.write( "in traditional understanding, &nbsp;must be re-paid by equal portions every &nbsp;6 &nbsp;months <BR>\n" );
document.write( "(not at the end of the &nbsp;5-th year).\r<BR>\n" );
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document.write( "If so, &nbsp;then the standard methodology for calculating the semi-annual payments <BR>\n" );
document.write( "and hence, the total in &nbsp;5 &nbsp;years, &nbsp;is totally different from calculated by @mananth.\r<BR>\n" );
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document.write( "The amount, &nbsp;calculated by @mananth is the future value of an ordinary annuity <BR>\n" );
document.write( "(of an amount deposited for &nbsp;5 &nbsp;years at &nbsp;8% &nbsp;annual interest compounded semi-annually).\r<BR>\n" );
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document.write( "It has nothing in common with the loan (the common are the words, <BR>\n" );
document.write( "that sounds identically, but have totally different meaning for loans).\r<BR>\n" );
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document.write( "So, &nbsp;my conclusion is that in this post, &nbsp;the notion of a loan, &nbsp;which is &nbsp;STANDARD &nbsp;in &nbsp;Finance, <BR>\n" );
document.write( "is intently &nbsp;(or due to illiteracy of a composer) &nbsp;mixed up with the notion of a regular annuity <BR>\n" );
document.write( "to confuse a reader.\r<BR>\n" );
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document.write( "Otherwise, &nbsp;the problem formulation, &nbsp;if written professionally, &nbsp;must be different\r<BR>\n" );
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document.write( "<PRE STYLE=\"white-space: pre-wrap; white-space: -moz-pre-wrap; white-space: -pre-wrap; white-space: -o-pre-wrap; word-wrap: break-word;\">\r\n" );
document.write( "    Alice Horn loaned $12,000 to Pete Hall to help him open a deli. \r\n" );
document.write( "    Pete plans to repay Alice in 5 years with 8% interest compounded \r\n" );
document.write( "    semiannually. How much will Alice receive, in total, back \r\n" );
document.write( "    for the loan at the end of 5 years? \r\n" );
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document.write( "As I observe during last several days, &nbsp;there is a flow of posts, &nbsp;written <BR>\n" );
document.write( "inaccurately and/or unprofessionally with the goal to confuse the readers.\r<BR>\n" );
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document.write( "It is very sad to see them.\r<BR>\n" );
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document.write( "For such composers &nbsp;(who only &nbsp;<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight%28highlight%28PRETEND%29%29 ALIGN=MIDDLE  ALT=\"highlight%28highlight%28PRETEND%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > &nbsp;to be students) &nbsp;I have a powerful tool:\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If I see such posts in the future, &nbsp;I will write to the managers of this project,\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;asking them, &nbsp;the managers, &nbsp;to remove such writers from their positions in the project.\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With explanations and pointing all their defective posts.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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