document.write( "Question 1093899: Please help me understand this
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document.write( "The formula when interest is compounded n time per year is A=p(1+r/n)nt \r
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document.write( "Where A is the accrued amount after t years, P is the starting principal, and r is the interest rate, expressed as a decimal, that is compounded n times a year. If you invest $1000 at an interest rate of 7%, and leave it there for 30 years, determine your ending balance if the interest is compounded.
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document.write( "1. Once a year 2. Twice a year
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Algebra.Com's Answer #708510 by stanbon(75887)![]() ![]() ![]() You can put this solution on YOUR website! The formula when interest is compounded n time per year is A=p(1+r/n)nt \n" ); document.write( "Where A is the accrued amount after t years, P is the starting principal, and r is the interest rate, expressed as a decimal, that is compounded n times a year. If you invest $1000 at an interest rate of 7%, and leave it there for 30 years, determine your ending balance if the interest is compounded. \n" ); document.write( "1. Once a year \n" ); document.write( "A(t) = P(1+(r/n))^(nt) \n" ); document.write( "Let t = 1 \n" ); document.write( "A(30) = 1000(1+(0.07/1))^(1*30) \n" ); document.write( "A(1) = 1000(1.07)^30 \n" ); document.write( "------------------------ \n" ); document.write( "2. Twice a year \n" ); document.write( "A(30) = 1000(1+(0.07/2))^(2*30) \n" ); document.write( "A(30) = 1000(1.035)^60 \n" ); document.write( "-------------- \n" ); document.write( "Cheers, \n" ); document.write( "Stan H. \n" ); document.write( "------------ \n" ); document.write( " \n" ); document.write( " |