SOLUTION: 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 is the amount of returned

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Question 83315: 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 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.
Carry all calculations to 6 decimals on all assignments then round the answer to the nearest cent.
Suppose you deposit $10,000 for 2 years at a rate of 10%.
Calculate the return (A) if the bank compounds monthly (n = 12). Round your answer to the hundredth's place.

Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Let p=10000, r=0.1, n=12, and t=2 and plug them into A=10000%281%2B0.1%2F12%29%5E%2812%2At%29

A=10000%281%2B0.1%2F12%29%5E%2812%2A2%29 Start with the given expression
A=10000%281%2B0.00833333333333333%29%5E%2812%2A2%29 Divide 0.1 by 12 to get 0.00833333333333333
A=10000%281%2B0.00833333333333333%29%5E%2824%29 Multiply the exponents 12 and 2 to get 24
A=10000%281.00833333333333%29%5E%2824%29 Add 1 and 0.00833333333333333 to get 1.00833333333333
A=10000%281.22039096137556%29 Raise 1.00833333333333 to 24 to get 1.22039096137556
A=12203.9096137556 Multiply 10000 and 1.22039096137556 to get 12203.9096137556

So the return is $12203.90