The value after 2 years will be 360639. FV PV 1rn n 1000 1 612 12. Compound amount and compound interest formula.
We will use the compound interest formula to solve these compound interest word problems.
The formula for compound interest is P 1 rn nt where P is the initial principal balance r is the interest rate n is the number of times interest is compounded per time period and t is the number of time periods. I PRT 5000 11 90 365 13562 Unit 81 Computing simple interest and maturity value 155 c Computing simple interestloans stated in days Example 5 As you can see from Example 5 a 360-day year benefits. A 5000 1 010 1 13. Faculty Mathematics at Coconino Community College Most banks loans credit cards etc.