Can someone check my answers please.
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=
looks good to me
To calculate the return (A) for a deposit of $4,000 for 8 years at a rate of 7%, compounded annually (n = 1), we will use the formula A=P(a+r/n)^nt.
1. Substitute the given values into the formula:
A = 4000(1 + 0.07/1)^(1)(8)
2. Simplify the expression inside the parentheses:
A = 4000(1.07)^(8)
3. Calculate the value inside the parentheses:
A = 4000(1.718304)
4. Multiply the principal amount by the calculated value:
A ≈ $6,873.22
Rounding the final answer to the nearest cent, the return (A) for this deposit would be approximately $6,873.22.
Note: In your calculation, you rounded the intermediate step (4000)(1.07)^8 to $6,872.72, which resulted in a slightly different rounded final answer. However, if we carry all calculations to six decimals on each intermediate step, the correct rounded answer to the nearest cent is $6,873.22.