document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=125849>Question 125849</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 4)	The formula for calculating the amount of money returned for an initial deposit into a bank account or CD (certificate of deposit) is given by<BR>\n" );
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document.write( "A is the amount of the return.<BR>\n" );
document.write( "P is the principal amount initially deposited.<BR>\n" );
document.write( "r is the annual interest rate (expressed as a decimal).<BR>\n" );
document.write( "n is the number of compound periods in one year.<BR>\n" );
document.write( "t is the number of years.\r<BR>\n" );
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document.write( "Carry all calculations to six decimals on each intermediate step, then round the final answer to the nearest cent.\r<BR>\n" );
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document.write( "Suppose you deposit $2,000 for 5 years at a rate of 8%.\r<BR>\n" );
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document.write( "a) 	Calculate the return (A) if the bank compounds annually (n = 1). Round your answer to the hundredth's place.\r<BR>\n" );
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document.write( "Answer:	\r<BR>\n" );
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document.write( "	Show work in this space. Use ^ to indicate the power or use the Equation Editor in MS Word.	\r<BR>\n" );
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document.write( "b) 	Calculate the return (A) if the bank compounds quarterly (n = 4).  Round your answer to the hundredth's place.\r<BR>\n" );
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document.write( "	Answer:	\r<BR>\n" );
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document.write( "c)	Does compounding annually or quarterly yield more interest?  Explain why.\r<BR>\n" );
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document.write( "	Answer:<BR>\n" );
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document.write( "	Explain:\r<BR>\n" );
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document.write( "d)	If a bank compounds continuously, then the formula used is  <BR>\n" );
document.write( "where e is a constant and equals approximately 2.7183.<BR>\n" );
document.write( "Calculate A with continuous compounding. Round your answer to the hundredth's place.\r<BR>\n" );
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document.write( "Answer:	\r<BR>\n" );
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document.write( "	Show work in this space:	\r<BR>\n" );
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document.write( "e) 	A commonly asked question is, “How long will it take to double my money?” At 8% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's place.\r<BR>\n" );
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document.write( "Answer:	\r<BR>\n" );
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document.write( "	Show work in this space:	\r<BR>\n" );
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document.write( "5)	Suppose that the function   represents the percentage of inbound e-mail in the U.S. that is considered spam, where x is the number of years after 2000. \r<BR>\n" );
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document.write( "Carry all calculations to six decimals on each intermediate step when necessary. \r<BR>\n" );
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document.write( "a)	Use this model to approximate the percentage of spam in the year 2003.  \r<BR>\n" );
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document.write( "Answer:\r<BR>\n" );
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document.write( "Show your work in this space:\r<BR>\n" );
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document.write( "b)	Use this model to determine in how many years (to two decimal places) it will take for the percent of spam to reach 95% provided that law enforcement regarding spammers does not change. \r<BR>\n" );
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document.write( "Answer:\r<BR>\n" );
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document.write( "Show your work in this space:<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #92235 by </B><A HREF=/tutors/aboutme.mpl?userid=checkley71><B>checkley71(8403)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=checkley71><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=92235\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A=P(1+R/N)^T/N<BR>\n" );
document.write( "A=2000(1+.08/1)^5/1<BR>\n" );
document.write( "A=2000(1.08)^5<BR>\n" );
document.write( "A=2000*1.469328<BR>\n" );
document.write( "A=$2,938.66 ANSWER.<BR>\n" );
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document.write( "A=2000(1+.08/4)^5*4<BR>\n" );
document.write( "A=2000(1.02)^20<BR>\n" );
document.write( "A=2000*1.485947<BR>\n" );
document.write( "A=$2,971.89 ANSWER.<BR>\n" );
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document.write( "I'LL LEAVE THE REST FOR YOU TO FINISH HAVING SHOWN YOU HOW TO SOLVE THE FIRST 2. </SPAN>\n" );
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