What present value compounded annually at 5% will amount to 25,525.63 in 5 years?
P = I(1+r/n)^(nt) Where P = final amount I = initial r = rate n = number of times compounded per year (1) t = years
We know all values except for I. Can you plug these values in?
@darkknight - my opinion - not is this little confusable ? with ,,t" years - i think number of years and there is again this ,,n" what mean the same too number of years
n = 1 in this case, this is compound interest @jhonyy9 so thats y it is good skill to have n there, if this were compounded semiannually then there would be a 2 where n is. do u understand jhonyy?
and for monthly ? 12 ?
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