Question

What does n represent?

Answer 1

that means after 3 months 2% is calculated (quarterly)

Answer 2

compounded quarterly means divide rate by 4
and multiply time by 4

Answer 3

10000*.02=200 so at end oh 3 mos. 10200
10200*.02=204 so at end of 6 mos. 10200+204 = 10404
...

Answer 4

you see the sequence ? i only wrote down two, but can you calculate the other two to make the full year?

Answer 5

i guess n represents the number of times your compounding... in this case, n=4

Answer 6

yep

Answer 7

i think the idea is for them making you discover the formula...

Answer 8

that's the formula!!! :) i guessed right...

Answer 9

now, only if i remember it...

Answer 10

looking for it....

Answer 11

A = P(1 + r/n)^(n*t)
this is called the compound interest formula...

Answer 12

n is the number of compounding per year..

Answer 13

t is the time... in years.

Answer 14

r is the rate (the interest rate...) in this case its 0.08

Answer 15

P is the amount you start with.. that's the principle

Answer 16

what does i represent in yours?

Answer 17

the formulas are very similar....

Answer 18

interest rate?

Answer 19

yw... glad to help (with what i could)