Concept explainers
To find: Simplified formula when the interest is compounded annually.
Answer to Problem 7LC
Simplified compound interest formula is
Explanation of Solution
Given information: Compound interest formula is given.
Formula used: Any final amount A showing growth, when interest on principal is compounded is given by the formula,
where A is last amount, P is initial amount, r is rate of interest, n is periods of interest and t is time.
Calculation: When interest is paid annually then
Conclusion: So, compound interest formula when interest on principal is compounded annually is given as,
Chapter 7 Solutions
High School Math 2015 Common Core Algebra 1 Student Edition Grade 8/9
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