P
= principal
amount (the initial amount you borrow or deposit)
r
= annual rate
of interest (as a decimal)
t
= number of
years the amount is deposited or borrowed for.
A
= amount of
money accumulated after n years, including interest.
n
= number of times
the interest is compounded per year
Ex. 1,500 dollars is deposited in the bank paying a yearly interest rate of 4.3% compounded quarterly. what is the balance after 6 years?
P: 1,500
R: 0.043
N: 4
T: 6
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