Question

You To find the amount A in an account after t years with principal P and an annual interest rate r compounded n times per year, what formula would you use

Answer 1

To find the amount in an account after a certain number of years with a given principal and interest rate compounded periodically, you use the formula A = P (1 + r/n)^(nt) to calculate the future value.

Step-by-step explanation:

To find the amount A in an account after t years with principal P and an annual interest rate r compounded n times per year, the formula you would use is:

A = P (1 + r/n)^(nt)

This formula calculates the future value of an investment. Here's how it works:

1. For example, if you have a principal of $1,000 with an interest rate of 2% compounded annually over 5 years, the calculation would be:

A = $1,000(1 + 0.02/1)^(1*5) = $1,104.08

Compound interest is the result of reinvesting interest, so interest in the next period is then earned on the principal sum plus previously accumulated interest.

Answer 2

The correct answer is A = P ×
`(1 + (r)/(100n) ) ^(nt)`.

Step-by-step explanation:

We need to find the amount of a principal invested in a compound interest.

Principal to be invested = P.

Time for the investment = t.

Annual rate of interest = r %.

Compounded n times per year.

Therefore amount (A) is given by the formula:

A = P ×
`(1 + (r)/(100n) ) ^(nt)` where symbols have meanings as per the above mentioned parameters.