Question

The formula A = P(1 + ?) is used to compute the amount, A, of an initial investment, P, compounded n times a year at an interest rate, r, after t years. Which expression represents the exponent?

(a) n * r * t
(b) n / r * t
(c) n * t / r
(d) n * t * r

Answer 1

The expression that represents the exponent in the formula A = P(1 + ?) is n * t * r.

Step-by-step explanation:

The expression that represents the exponent in the formula A = P(1 + ?) is option (d) n * t * r.

Let's break down the formula to understand each component:

A represents the amount of the investment after t years.

P represents the initial investment.

n represents the number of times the investment is compounded per year.

r represents the interest rate.

So, when you multiply n, t, and r together, you get the exponent that is used in the formula.