SOLUTION: The formula to calculate interest and update balance is {{{A= P(1+(r/n))^nt}}}. A = amount P = initial amount r = interest rate n = times per year t = amount of years Is {{

Algebra ->  Finance -> SOLUTION: The formula to calculate interest and update balance is {{{A= P(1+(r/n))^nt}}}. A = amount P = initial amount r = interest rate n = times per year t = amount of years Is {{      Log On


   

Question 950143: The formula to calculate interest and update balance is A=+P%281%2B%28r%2Fn%29%29%5Ent.
A = amount
P = initial amount
r = interest rate
n = times per year
t = amount of years
Is A-P the same as P%28r%2Fn%29%5Ent?
I need just the amount of interest calculated.

Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
A=+P%281%2B%28r%2Fn%29%29%5Ent.
A=+P%2BP%28r%2Fn%29%5Ent.
A-P=P%28r%2Fn%29%5Ent.
Yes, interest is always the amount at the end of the period(A) minus the initial investment(P)