ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Find the j first, then find the time
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Find the n first then find the time
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Find the n first, then the j and lastly find the time
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All of the above
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Detailed explanation-1: -Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one. The total initial amount of the loan is then subtracted from the resulting value.
Detailed explanation-2: -A = P (1 + r) This formula helps us figure out how much interest we can earn on an investment over a certain period of time utilizing the multiple compounding period method. If we have $5, 000 invested at an annual rate of 8% for 10 years, we can easily calculate the total interest earned at the end of the term.
Detailed explanation-3: -Compound interest, can be calculated using the formula FV = P*(1+R/N)^(N*T), where FV is the future value of the loan or investment, P is the initial principal amount, R is the annual interest rate, N represents the number of times interest is compounded per year, and T represents time in years.