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In many books, if your principle amount originally deposited is P, then the compound interest formula gives the amount A in your bank after t
In many books, if your principle amount originally deposited is P, then the compound interest formula gives the amount A in your bank after t years at a rate of r (given in decimal form) compounded m times per year is the following: r A = P(1+ .)mt. m Our textbook, however, on pg.432 gives the following formula: F = (1 + i)" P. Read this part of the book and understand the connection between your textbook's formula and the formula above. Also see Example 3 on pg.432 to answer the question below. What would i and n be in the following scenario? 12 percent compounded monthly for 2 years. Then i equals And n equals
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