Question

savings account compounds interest, at a rate of 17%, once a year. John puts $1,000 in the account as the principal. How can John set up a function to track the amount of money he has?

Answer 1

Compound intrest formula:
\[A = P (1+ \frac{ r }{ n })nt\]

A = Amount at maturity or at time t.
P = Principal Amount = $1,000
r = Annual interest rate in decimal = 0.17
n = compounding period (compounded how many times a year) = 1
t = years invested

Answer 2

so i would use this equation to solve the problem? @Light&Happiness

Answer 3

@Light&Happiness

Answer 4

Yes, use the equation given! :)

Answer 5

Wait what i put for T @Light&Happiness

Answer 6

T = years invested

Answer 7

You can use http://www.wolframalpha.com/ to help you solve this problem.

Answer 8

I think responder meant to write

A = P(1+r/n)^nt