Posted by **Ruth** on Thursday, February 2, 2012 at 11:25pm.

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

nt

n

r

P A „Ê„Ë

„É

„º„»

„¹

ƒ 1ƒy

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 decimal places on each intermediate step, then round the

final answer to the nearest whole cent.

Suppose you deposit $2,000 for 5 years at a rate of 8%.

a) Calculate the return (A) if the bank compounds annually (n = 1). Round your

answer to the nearest whole cent.

## Answer This Question

## Related Questions

- math - The formula for calculating the amount of money returned for an initial ...
- College Algebra~ Check answer please - Can someone check my answers please. The ...
- MATH - Andrea wants to deposit money into a bank account that earns 2.5% simple ...
- Math help - Samantha finds a bank, Star Bank, which offers a CD account with a 2...
- algebra interest word problem - Erin Grabish recevied $2,000 for speaking at a ...
- magh - suppose you put money into teo different bank accounts. In account #1 you...
- 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 ...
- math - Sonia received a statement on her Certificate of Deposit showing that her...
- Math - find the amount of money in a bank account given the following conditions...

More Related Questions