mustish1
asked on
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