Tuesday

September 23, 2014

September 23, 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

**Answer this Question**

**Related Questions**

math - The formula for calculating the amount of money returned for an initial ...

algebra - The formula for calculating the amount of money returned for an ...

algebra - If you write a check without enough money in the bank a certain store ...

Algebra HELP :( - If you write a check without enough money in the bank, a ...

Pre-Algebra - Solve the inequality for each solution. -Arnelle's checking ...

Calculus - Redo problem 8 in section 6.3 of your textbook (page 288) assuming ...

pre algebra - Mr Chee deposited $80 into his checking account. Then, after ...

Accounting - A check returned by a bank because the issuer's cash account ...

Alg 2 - Suppose you deposit a principal amount of p dollars in a bank account ...

Alg2 - Help....Help... Suppose you deposit a principal amount of p dollars in a ...