ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the formula in finding the time if it is compounding more than once a year?
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Explanation:
Detailed explanation-1: -The compound interest formula is ((P*(1+i)^n)-P), where P is the principal, i is the annual interest rate, and n is the number of periods.
Detailed explanation-2: -(CF). A compounding factor is a number greater than one, that we multiply a present value by, to work out its Future Value (FV) as: FV = CF x present value. Annual effective yield (r) = 6%.
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