document.write( "Question 1201069: You invest $ 5000 in Acme Inc. on January 1, 2000. Your investment returns 2.75 % compounded monthly. How much money will you have on June 30, 2006? \n" ); document.write( "

Algebra.Com's Answer #853548 by ikleyn(53618) $\"\"$ $\"About$

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\n" ); document.write( "You invest $ 5000 in Acme Inc. on January 1, 2000. Your investment returns 2.75 % compounded monthly.
\n" ); document.write( "How much money will you have on June 30, 2006?
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\n" ); document.write( "\n" ); document.write( " Calculations and the answer in the post by @mananth are incorrect.\r
\n" ); document.write( "\n" ); document.write( " I came to make the job accurately as it should be done.\r
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document.write( "r = R/100\r\n" );
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document.write( "r = 2.75/100\r\n" );
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document.write( "r = 0.0275 rate per year\r\n" );
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document.write( "Amount A = ,  N is the number of compounding (= the same as the number of months N = 78).\r\n" );
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document.write( "A = \r\n" );
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document.write( "A = $5977.39.    ANSWER\r\n" );
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\n" ); document.write( "\n" ); document.write( "Solved correctly.\r
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\n" ); document.write( "\n" ); document.write( "These typical financial problems assume a PRECISE solution correct to one single cent.\r
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\n" ); document.write( "\n" ); document.write( "It is a standard for banking practice, and it is a standard for solving school/college exercises
\n" ); document.write( "in Financial Math, because the answer of an exercise must match to the precise standard value.\r
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\n" ); document.write( "\n" ); document.write( "To get a precise answer, NEVER make intermediate rounding, since it inevitably leads to loosing precision.\r
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\n" ); document.write( "\n" ); document.write( "To get a precise answer, use specialized financial calculators, or specialized online calculators,
\n" ); document.write( "or Excel spreadsheets.\r
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