Question 53224
NO!  I think you have some numbers wrong in this.  The value of n is the number of times per year that the compounding occurs, and t is the number of years.  This means that the "nt" that is the exponent of the total quantity is actually the total number of periods for the compounding of the interest.  In this case, n= 1 and t = 2, so nt=2


A=P(1+r/n)^nt 
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. 
Suppose you deposit $10,000 for 2 years at a rate of 10%.
Calculate the return (A) if the bank compounds annually (n = 1). Round your answer to the hundredth's place.
For that problem I did:
A= $10,000(1+.10/1)^2*1
A=$10,000(1.10)^2

A=$10,000(1.21)
A=$121,000
That's what I got!


R^2 at SCC