SOLUTION: I NEED HELP WITH THIS PROBLEM TUTORS. THANKS THE FORMULA FOR CALCULATING THE AMOUNT OF MONEY RETURNED FOR AN INITIAL DEPOSIT INTO A BANK ACCOUNT OR CD )CERTIFICATE OF DEPOSIT) IS

Question 116300: I NEED HELP WITH THIS PROBLEM TUTORS. THANKS
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]
A=AMOUNT OF THE RETURN
P=PRINCIPAL AMOUNT INITIALLY DEPOSITED
r=the annual interest rate (expressed as a decimal)
n=the number of compound periods in one year.
t= is the number of years.
CARRY ALL CALUCULATIONS 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%
A) CALCULATE THE RETURN (A) IF THE BANK COMPOUNDS ANNUALLY (N=1). ROUND YOUR ANSWER TO THE HUNDRETH'S PLACE.
ANSWER:
SHOW YOUR WORK:
B) CALCULATE THE RETURN (A) IF THE BANK COMPOUNDS MONTHLY (N=12).ROUND YOU ANSWER TO THE NEAREST HUNDRETH'S PLACE.
ANSWER:
SHOW YOUR WORK:
C) DOES COMPOUNDING ANNUALLY OR MONTHLY YIELD MORE INTEREST? EXPLAIN WHY?
ANSWER:
SHOW YOUR WORK:
D) IF A BANK COMPOUNDS CONTINUOUSLY, THEN THE FORMULA USED IS A=Pe^rt
were e is a constant and equals approximatly 2.7183. Calculate A with continuous compounding. Round your answer to the hundreth's place.
answer:
show your work:
E) A COMMONLY ASKED QUESTION IS,"HOW LONG WILL IT TAKE TO DOUBLE MY MONEY?" AT 7% INTEREST RATE AND CONTINUOUS COMPOUNDING, WHAT IS THE ANSWER? ROUND YOUR ANSWER TO THE HUNDRETH'S PLACE.
ANSWER:
SHOW YOUR WORK.
NEED HELP ASAP. THANK YOU VERY MUCH TUTOR!!

Answer by MathLover1(20849) (Show Source): You can put this solution on YOUR website!

is the amount of returned
is the principal amount deposited
is the annual interest rate (expressed as a decimal)
is the compound period
is the number of years
a)

$
= %

��.$

b)
given:

��.$

c)
compounding monthly yield more interest; the more frequently an account pays interest, the faster you can start earning interest on interest
Compounded annually:

��.$

Compounded monthly:

��.$

d)

let

answer:

� ��.$

e)

let

if � ��.$.....double is �

=

answer:

..years

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