Compound Interest Formula
P= principal
amount (the initial amount you borrow or deposit)
r = annual
rate of interest (as a decimal)
t = number
of years the amount is deposited or borrowed for.
A = amount
of money accumulated after n years, including interest.
n = number
of times the interest is compounded per year
t in month= 12
t in day= 365
t in weeks=52
t in quarterly= 4
|
An amount of $1,500.00 is
deposited in a bank paying an annual interest rate of 4.3%, compounded quarterly.
What is the balance after 6 years?
|
P =
1500, r =
4.3/100 = 0.043, n = 4, t = 6
