SOLUTION: Please help,The formula for calculating the amount of money? The formula for calculating the amount of money returned for an initial deposit into a bank account or CD (certifica

Question 123659: Please help,The formula for calculating the amount of money?
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(1+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 $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 hundredth's place.
Answer:
Show work in this space.
b) Calculate the return (A) if the bank compounds monthly (n = 4). Round your answer to the hundredth's place.
Answer:
Show work in this space
c) If a bank compounds continuously, then the formula used is A=Pe^rt
where e is a constant and equals approximately 2.7183.
Calculate A with continuous compounding. Round your answer to the hundredth's place.
Answer:
Show work in this space

e) A commonly asked question is, �How long will it take to double my money?� At 8% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's place.
Answer:
Show work in this space

Answer by Fombitz(32388) (Show Source): You can put this solution on YOUR website!
a.) P=$2000, r=8%(8/100=0.08), n=1, t=5

$2938.66
b.) P=$2000, r=8%(8/100=0.08), n=4, t=5

$2971.89
c.) P=$2000, r=8%, t=5

$2983.65
d.) P=$2000, r=8%

8.66 years
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