Hello, I made a discussion post (on the left) it was substantial and about compound interest. to receive more points i have to be able to answer my classmates question it is circled in YELLOW.. can you help me in what to respond back to her ? thank you, responding in a timely matter would be appreciated!!!!
Compound Interest was one of the most interesting things to me. Being an oce managerl do sometimes have to come with interest charges and other specic amount thats patients wonder about overtime, calculating interest is something i mnve to succeed at, We also use this when we are paying otTcar loans and other things that have principal balances. Compound interest means the interest you earn each year is added to your original principaly so that the balance doesn'tjust hardty grow, it grows at an increasing rate. I truly believe and teamed that this is one of the most useml concepts in linance, The formula for interest that is compounded is: A replegts the amount 01$ alter a certain amount of time P represents the amount of money you begin with r represents the interest late and is always represented as a decimal n is the number oftimes interest is accumulated in 1 year if interest is compounded annually then n = 1 if interest is compounded quanerly then n = 4 if interest is compounded monthly than n 2 12 t represents the number of time in years Example: Let's imagine you have awesome parents who decided to invest $1000 in a sayings for your tuition since the moment you came out the womb. The average interest rate is 4% and is compounded quanerty, How much money will have accumulated by the time you turn 18? i 4 of ; r We Will use our formula A: P3[1+ W] lrnd let P :1000,r= 0.04, n = 4 l What if they invested that same exact $1000 in a stock bond that averages 8% interest compounded monthly How much will you have for school atter 18 years? P=1000' r=0.08,n=12andl=15 _ .0 .IOl-i Tm\" 2 1 A:1oooj[1 + '2120057 i, please help me with what to respond to this classmate of mine. she wants helpwith my example I provdided on the left regaurdingoompound interest. This is a good example of compound interest i understand how you would multiply p, n' and 1 together to get some of the equation, but how do you get the out come of the problem in the parentheses and after you get that answer how do you i lude it into the equation? I have been having issues With equations like this and l still keep getting the wrong
