SOLUTION: Please help,The formula for calculating the amount of money? The formula for calculating the amount of money returned for an initial deposit into a bank account or CD (certifica

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Question 123659: Please help,The formula for calculating the amount of money?
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)^nt
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 $2,000 for 5 years at a rate of 8%.
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.
b) Calculate the return (A) if the bank compounds monthly (n = 4). 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 A=Pe^rt
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

e) A commonly asked question is, “How long will it take to double my money?” At 8% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's place.
Answer:
Show work in this space

Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
a.) P=$2000, r=8%(8/100=0.08), n=1, t=5
A=P%281%2Br%2Fn%29%5E%28nt%29
A=2000%281%2B.08%2F1%29%5E%281%285%29%29
A=2000%281.08%29%5E%285%29
A=2000%281.469328%29
highlight%28A=2938.66%29
$2938.66
b.) P=$2000, r=8%(8/100=0.08), n=4, t=5
A=P%281%2Br%2Fn%29%5E%28nt%29
A=2000%281%2B.08%2F4%29%5E%284%285%29%29
A=2000%281.02%29%5E%2820%29
A=2000%281.485947%29
highlight%28A=2971.89%29
$2971.89
c.) P=$2000, r=8%, t=5
A=Pe%5E%28rt%29
A=2000%2Ae%5E%280.08%2A5%29
A=2000%2Ae%5E%280.4%29
A=2000%281.02%29%5E%2820%29
A=2000%281.491825%29
highlight%28A=2983.65%29
$2983.65
d.) P=$2000, r=8%
A=Pe%5E%28rt%29
4000=2000%2Ae%5E%280.08%2At%29
2=e%5E%280.08t%29
0.693147=0.08t%29
t=0.693147%2F0.08
highlight%28t=8.66%29
8.66 years