Question

Explain why the amount of money in the account at the end of t years is given by the formula: P=P0(1+r/n)^nt

Answer 1

This is the formula you use for someone investing in money. The formula is actually supposed to be: A=P(1+
`(r)/(n)`)
`^(n(t))`.
A is the total amount, P is the principal amount (the initial; original), r is percent (%) rate in decimal form, n is frequency, and t is the amount of years.