In the formula A represents the final amount in the account after t years compounded n times at interest rate r with starting. Unlike the simple interest the compound interest pays interest on both the principal and the interest already earned. 1 for certain time periods and rates of interest calculated at both simple and compound interest.
You must compute C1 IN 2000 1 00124 The power is difficult to compute without a calculator.
Example 1 A deposit of 3000 earns 2 interest compounded semiannually. This means that you will not earn an interest on your interest. In the formula A represents the final amount in the account after t years compounded n times at interest rate r with starting. T time in years.