mustish1

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# Interest rate formula

ASKER

A = P(1+r/n)^nt

P=3800

r=5.4

t=8

what is n?

P=3800

r=5.4

t=8

what is n?

n is the number of times that interest is compounded per year. So in your case this is 12 because the question states that interest is compounded monthly.

SOLUTION

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ASKER

It looks like different the way it solve above.

A = P(1+r/n)^nt

P=3800

r=5.4

t=8

n=12

A=3800(1+5.4/12)12*8

A = P(1+r/n)^nt

P=3800

r=5.4

t=8

n=12

A=3800(1+5.4/12)12*8

ASKER CERTIFIED SOLUTION

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ASKER

Thank You.

http://www.thecalculatorsite.com/articles/finance/compound-interest-formula.php