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
P A „Ê„Ë
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
More 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 ...
- 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 ...