17 The compound interest formula A = P(1+ 5)nt. • A future value • P is principal • t is the number of years • r is the interest rate per year • n is the number of compounding period per year. a) Find the future value A for P = 10,000, r = 6%, t = 5, n = 4. b) Find the present value P for A = 18, 000, r = 2.5%, t = 8, n = 12 %3D

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