Question

what is the formula of conmpound interest plz give the answer with an example

Answer 1

Formulas where n = 1 (compounded once per period or unit t)

1)Calculate Accrued Amount (Principal + Interest) A = P(1 + r)t

2)Calculate Principal Amount, solve for P. P = A / (1 + r)t

3)Calculate rate of interest in decimal, solve for r. r = (A/P)1/t - 1.

4)Calculate rate of interest in percent. ...

5)Calculate time, solve for t.