document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=53225>Question 53225</A>: <I><SPAN STYLE=\"word-break: break-all;\"> I am not sure if I am doing this problem the right way.<BR>\n" );
document.write( "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\r<BR>\n" );
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document.write( "A=P(1+r/n)^nt\r<BR>\n" );
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document.write( "A is the amount of returned.<BR>\n" );
document.write( "P is the principal amount initially deposited.<BR>\n" );
document.write( "r is the annual interest rate (expressed as a decimal).<BR>\n" );
document.write( "n is the compound period.<BR>\n" );
document.write( "t is the number of years.\r<BR>\n" );
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document.write( "Suppose you deposit $10,000 for 2 years at a rate of 10%.<BR>\n" );
document.write( "Calculate the return (A) if the bank compounds quarterly (n = 4).  Round your answer to the hundredth's place.\r<BR>\n" );
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document.write( "Thanks for your time! </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #35582 by </B><A HREF=/tutors/aboutme.mpl?userid=rapaljer><B>rapaljer(4671)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=rapaljer><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=rapaljer><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=35582\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> If the bank compounds quarterly, that is 4 times per year, so n = 4, t=2, and nt = 8.\r<BR>\n" );
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document.write( "A=P(1+r/n)^nt <BR>\n" );
document.write( "A=10000(1+.10/4)^8<BR>\n" );
document.write( "A=10000(1.025)^8\r<BR>\n" );
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document.write( "A=10000(1.2184029)<BR>\n" );
document.write( "A = $12184.03\r<BR>\n" );
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document.write( "R^2 at SCC </SPAN>\n" );
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