Thursday

December 18, 2014

December 18, 2014

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

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.

- algebra -
**Steve**, Friday, February 3, 2012 at 11:35amUsing more conventional online notation,

A = P(1+r/n)^nt

A = 2000(1.08)^5 = 2000*1.469328 = 2938.656 or 2938.66

**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 ...

algebra interest word problem - Erin Grabish recevied $2,000 for speaking at a ...

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 ...

Finite Mathematics - Jessica wants to accumulate $14,000 by the end of 5 yr in a...

Finance - 7. Today you open a bank account and make a deposit of $6,000. Then ...

College level math - Suppose you deposit $100 in an account that earns 0.5% each...