# SOLUTION: I am not sure if I am doing this problem the right way. The formula for calculating the amount of money returned for an initial deposit money into a bank account or CD (Certificat

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 Click here to see ALL problems on logarithm Question 53225: I am not sure if I am doing this problem the right way. The formula for calculating the amount of money returned for an initial deposit money into a bank account or CD (Certificate of Deposit) is given by A=P(1+r/n)^nt A is the amount of returned. P is the principal amount initially deposited. r is the annual interest rate (expressed as a decimal). n is the compound period. t is the number of years. Suppose you deposit \$10,000 for 2 years at a rate of 10%. Calculate the return (A) if the bank compounds quarterly (n = 4). Round your answer to the hundredth's place. Thanks for your time!Answer by rapaljer(4667)   (Show Source): You can put this solution on YOUR website!If the bank compounds quarterly, that is 4 times per year, so n = 4, t=2, and nt = 8. A=P(1+r/n)^nt A=10000(1+.10/4)^8 A=10000(1.025)^8 A=10000(1.2184029) A = \$12184.03 R^2 at SCC