what is the compound interest formula?
Question
what is the compound interest formula?
Solution
The compound interest formula is:
A = P (1 + r/n) ^ (nt)
Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (in decimal form, so 5% would be 0.05).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for, in years.
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