Question

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 $3,000 for 6 years at a rate of 7%.
a) Calculate the return (A) if the bank compounds semi-annually.
B. Calculate the return (A) if the bank compounds monthly.

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 nearest cent.
Answer:
Show work in this space

Answer 1

a) Calculate the return (A) if the bank compounds semi-annually.
@leojones77 Can you plug the numbers into
A=p(1+r/n)^nt with n = 2

Answer 2

Similarly with n = 12 for
B) compounds monthly.

Answer 3

Can you show me how I would set this problem up so that I can work it out please

Answer 4

You already have the formula and all the data ready, just plug numbers in !

Answer 5

A= P (1 + r/n ) ^nt with n = 2
= 3,000 ( 1 + .07/2 )^(2*6)

Answer 6

thanks