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The formula for calculating the amount of money returned for an intitial deposit into a bank account or CD is given by:
A is the amount of the return
P is the principal amount initially deposited
R is the annual interest rate (expressed in decimal)
T is the number of years
Carry all the calculations to six decimals on each intermediate step,then round the answer to the nearest cent
1. Suppose you deposit $2,000 for 5 years at a rate of 8 percent. Calculate the return (A) if the bank compounds annually (n=1) Round answer to the hundreths place.
2. Calculate the return (A) if the bank compounds quarterly (n=4) Round your answer to the hundredths place.
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