Question

$100,000 for 20 years compounded
at 4% annually results in a rate per period of?

Answer 1

I=(PxRxT)/2

Answer 2

oh sry

Answer 3

wat does compounded mean?

Answer 4

A=P(1+i)
to the power n

Answer 5

compounded means each year when u calculate interest you add up the previous years interest to the principal amount

Answer 6

hmm im not getting tested on it so ill wait till it pops back up later on in life to bite me in the but

Answer 7

Would the equation for this be 100,000/.04^{20} ? because Im not sure of the answer I am getting.

Answer 8

\[Amount=100000(1+.04)^{1}\]

Answer 9

the amount you get is the total amount including interest after one year
u change the value of n depending on the period for example if you want to know the amount you will get after 5 years you put the value as 5 and you will get the amount at the end of five years including interest