A P e r t 1144 P e 004 6 1144 P e 024 1144 e 024 P 9 P. One very important exponential equation is the compound-interest formulawhere A is the ending amount P is the beginning amount or principal r is the interest rate expressed as a decimal n is the number of compoundings a year and t is the total number of yearsRegarding the variables n refers to the number of compoundings in any one year not to the total number of. N is the number of times interest is compounded in a year.
Turn on your TI-83 Plus calculator and access the TVM Time-Value-of-Money Solver application by first pressing the APPS button then 1 for Finance and 1 again for TVM Solver Your calculator will open a simple application screen of eight lines that you can use to determine any variable of compound interest.
This formula makes use of the mathemetical constant e. If it took 6 years for your initial amount compounded continuously at an interest rate of 4 and you ended up with 1144 then your initial principal was 9. Turn on your TI-83 Plus calculator and access the TVM Time-Value-of-Money Solver application by first pressing the APPS button then 1 for Finance and 1 again for TVM Solver Your calculator will open a simple application screen of eight lines that you can use to determine any variable of compound interest. T Time period in years.