ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The compound interest formula is:F = P(1 + r/100)TWhat does the F represent?
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The amount of interest earned.
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The amount of time that has passed.
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The total amount of money after a certain amount of time.
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The amount required to invest.
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Explanation:
Detailed explanation-1: -The other variable is F, which is the future sum of money at the end of the period n. This is the amount of money that is received or paid in the future in the end of the end period, end year, end month.
Detailed explanation-2: -The formula for compound interest is A = P(1 + r/n)^nt where P is the principal balance, r is the interest rate, n is the number of times interest is compounded per year and t is the number of years.
Detailed explanation-3: -Simple Interest Formula F is the Future value. P is the Present value. r is the Annual percentage rate (APR) changed to a decimal. t is the Number of years.
There is 1 question to complete.