SOLUTION: 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 is the amount of the return. P

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Question 253451: 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 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%.
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. Use ^ to indicate the power or use the Equation Editor in MS Word.

b) Calculate the return (A) if the bank compounds monthly (n = 12). 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
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:
Thank you
Answer by richwmiller(9143) About Me  (Show Source):
You can put this solution on YOUR website!
You mentioned the variables but never gave the formula.
"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"