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9/72
15
WATCH YOUR MONEY GROW
P dollars are placed in a savings account which pays r% per year compound
interest, compounded annually. In n years, the investment will be worth S
dollars, where
t r - - - - - - - - - - - - r % increase per year
S
=
P(l+r)n . . . . . . .
I-----------n
years
t
+
Initial amount Invested
amount at the end of n years.
Store the following program.
10
20
++125
SPACE
STOP
PRINT
STORE 01
STOP
PRINT
1
+
STORE
02
RECALL
02
SPACE
STOP
PRINT
A TO X
RECALL 01
X
PRINT
GO TO
20
Run the program for
P
=
$100
r
=
6%
Key in P
Store P in register 01
Key in r
Compute l+r
Store 1 +r in register 02
Recall1+r
Key in n
Compute (1 +r)n
Recall P
Compute S
Print S
Go back for a new value of n.
n
=
2,
5
and 10 years
15-1
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