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October 21, 2014

October 21, 2014

Posted by **Alicia** on Tuesday, December 11, 2007 at 6:29pm.

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

A=P(a+r/n)^nt

A is the amount of the return.

P is the principal amount initially deposited.

r is the annual interest rate (expressed as a decimal).

n is the number of compound periods in one year.

t is the number of years.

Carry all calculations to six decimals on each intermediate step, then round the final answer to the nearest cent.

Suppose you deposit $4,000 for 8 years at a rate of 7%.

Calculate the return (A) if the bank compounds annually (n = 1). Round your answer to the hundredth's place.

P=4000 A=(4000)(1+.07/1)^(1)(8)

r=.07 A=(4000)(1.07)^8

t=8 A=(4000)(1.71818)

n=1 A=$6,872.72

A=

- College Algebra~ Check answer please -
**Damon**, Tuesday, December 11, 2007 at 6:49pmlooks good to me

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