Use the numbers from the original example: $1,000 invested at a 2% interest rate compounded n times per year. Compare the change in P as n increases. Fill in the table. Use a calculator and write the values to 5 decimal places.

http://imgur.com/zHjBnQq

Question

Use the numbers from the original example: $1,000 invested at a 2% interest rate compounded n times per year. Compare the change in P as n increases. Fill in the table. Use a calculator and write the values to 5 decimal places.

http://imgur.com/zHjBnQq

kinged · Answer

P = principal amount (the initial amount you borrow or deposit)
r  = annual rate of interest (as a decimal)
t  = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n  =  number of times the interest is compounded per year