document.write( "Question 1208037: You deposit $400 each month into an account earning 8% interest compounded monthly.
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document.write( "a) How much will you have in the account in 15 years?
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document.write( "b) How much total money will you put into the account?
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document.write( "c) How much total interest will you earn?
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Algebra.Com's Answer #846170 by ikleyn(52776)![]() ![]() You can put this solution on YOUR website! .\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "This problem in the post is formulated INCORRECTLY.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "Why ? - Because there are TWO classic/standard TYPES of annuities.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "Ordinary annuity saving plan assumes that the deposits are made at the end of each month.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "Annuity Due saving plan assumes that the deposits are made at the beginning of each month.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "These different types annuities use different formulas and lead to different final amounts.\r \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "***********************************************************************************\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "An accurate formulation must define in its description, which annuity is considered.\r \n" ); document.write( "\n" ); document.write( "It must say when the deposits are made: at the beginning of months or at the end of months.\r \n" ); document.write( "\n" ); document.write( "Without it, the problem's formulation is INCOMPLETE.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "***********************************************************************************\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "I noticed/pointed it at this forum many times, but without any visible outcome.\r \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "So, based on this my experience, I conclude, that to teach these persons \n" ); document.write( "to write these problems correctly is the same as to hit wood with a stick.\r \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " \n" ); document.write( " |