Question

Write the formula for calculating amount with compound interest and explain the

terms in the formula.​

Answer 1

Step-by-step explanation:

The formula for compound interest is P (1 + r/n)^(nt)

$P(1 + \frac{r}{n} ) {}^{nt}$

where P is the initial principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods.