Question

Complete the statement about the compound interest expression.

P(1+r/n) nt
The number of times that interest is compounded per year is represented by the variable (P, r, n t)
represented by (P, r, n , t)
while the annual interest rate is​

Answer 1

The compound interest expression P(1+r/n)nt represents the future value when interest is compounded. It is calculated using the principal amount, annual interest rate, number of times interest is compounded per year, and the time period.

Step-by-step explanation:

The compound interest expression P(1+r/n)nt represents the future value when interest is compounded. In this expression, P represents the principal amount, r represents the annual interest rate, n represents the number of times interest is compounded per year, and t represents the number of years. For example, if you have a principal of $1000, an annual interest rate of 5%, compounded quarterly (n=4), and a time period of 2 years, the formula would be P(1+r/n)nt = $1000(1+0.05/4)4*2 = $1104.08.

Answer 2

Answer: 1. (n) 2. (r)

The number of times that interest is compounded per year is represented by the variable (n), while the annual interest rate is represented represented by (r).

Explanation: That is the compound interest expression.