Suppose you deposit a principal amount of P dollars in a bank account that pays compound interest. If the annual interst rate is r (expressed as a decimal) and the bank makes interest payments n times every year, the amount of money A you would have after t years is given by .

Which equation below shows the amount of money you would have after t years if you deposit $1000 into an account paying 4% annual interest compounded quarterly (four times per year)?

Question

Suppose you deposit a principal amount of P dollars in a bank account that pays compound interest.  If the annual interst rate is r (expressed as a decimal) and the bank makes interest payments n times every year, the amount of money A you would have after t years is given by .

Which equation below shows the amount of money you would have after t years if you deposit $1000 into an account paying 4% annual interest compounded quarterly (four times per year)?

anonymous · Answer

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