Question

Is there a different, less confusing way to solve compound interest than using the formula p(1 + r)^t?

Answer 1

yes, but it takes alot longer ....

Answer 2

compounding interest is just interest applied to added interest

Answer 3

spose you start with P in an account that earns an interest of r

after 1 year, you have P + Pr in the account: or P(1+r)

after another year goes by, the interest accrues to: P(1+r) + P(1+r)r

P(1+r) (1+r) ... P(1+r)^2

after year 3 ... etc

Answer 4

Okay. Thank you! :)

Answer 5

your welcome ;)