Question

In the periodic compound interest formula Upper A equals Upper P (1 plus StartFraction r Over n EndFraction )Superscript nt ​, what does the variable n​ represent?

Answer 1

The variable n represents the number of times in a year in which we compound the interest rate

Explanation:

The periodic compound interest formula is given as;

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

The variable n represents the number of times in a year in which the interest rate is compounded