Derive a formula for the value V after 1 year of an amount A invested at r%

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Derive a formula for the value V after 1 year of an amount A invested at r% (as a decimal) annual interest, compounded n times during the year. If A = $1000 and r = 0.04 (4%), write two or three paragraphs explaining why the amount of interest increases as n increases and stating your approach to finding the maximum possible amount of interest.

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Basic Technical Mathematics

ISBN: 9780137529896

12th Edition

Authors: Allyn J. Washington, Richard Evans

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