Formula for Calculating Tensile Stress?

The formula for calculating the amount of money returned for an initial deposit?

• 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 9 years at a rate of 6%. Calculate the return (A) if the bank compounds annually (n = 1). Round your answer to the hundredth's place. b) Calculate the return (A) if the bank compounds quarterly (n = 4). Round your answer to the hundredth's place. c) Does compounding annually or quarterly yield more interest? Explain why. d) If a bank compounts 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 hundreth's place.

• Answer:

  http://www.ecalc.com/ A = P*(1 + r/n)^(nt) a)A = 3000(1+ 0.06/1)^(9*1)............annual is one compound period per year. A = 3000*(1.06)^9 A= $5068.436877008078 = $ 5068.44 b)A = 3000( 1 + 0.06/4)^(9*4)..........quarterly is 4 compound periods per year A= 3000*(1.015)^(36) A= $ 5127.418614293094 = $ 5127.42 c)Quarterly. Because there is more time for the interest money to get more interest applied to it (earning interest on interest). d)Continuously A= Pe^(rt) A = 3000*e^(0.06*9) A =3000* e^(0.54) A = $5148.020586554576 = $ 5148.02