Asked Sep 8, 2019

What is the formula for compounded interest and how do you work out a problem



Expert Answer

Step 1

The aim is to find the formula for compund interest and teh way to work out.

Step 2

Formula for compounded interest:

The formula for compound interest, including principal sum will be as given below:



A=The future value of the investment including interest.

P= The initial deposit

r = The annual interest rate

n = the number of times that interest is compounded per unit t

t= the time period the money is borrowed or invested for.

Step 3

For example:

If an amount of $2,000 is deposited into savings account at an annual interest rate of 6% which...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in



Hypothesis Testing

Related Statistics Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: You are the foreman of the Bar-S cattle ranch in Colorado. A neighboring ranch has calves for sale, ...

A: Note: We are authorized to answer 3 sub parts at a time, since you have not mentioned which subparts...


Q: What is standard deviation

A: Standard deviation is a measure of spread in any data set. It expresses how all data points vary fro...


Q: If a given line has a negative slope, then what is the sign of the slope of the line that is perpend...

A: Relationship between slopes of two perpendicular straight lines:The slopes of two lines, which are p...


Q: The following joint probability distribution summarize the doctoral degrees conferred in the social ...

A: In this question, a table has given to us which shows the joint probability distribution, based on w...


Q: Overproduction of uric acid in the body can be an indication of cell breakdown. This may be an advan...

A: The provided information are:


Q: Comparing the bacterial effects of antibacterial and non-antibacterial soap would be (sample n=3) A)...

A: Explanation:In order to compare the bacterial effects of an antibacterial soap with that of a non-an...


Q: Use the rank correlation coefficient to test for a correlation between the two variables. Use a sign...

A: In this question we have the ranks of judges, we need to conduct the hypothesis test to identify whe...


Q: A researcher obtains hamstring measurements from a group of classmates. She then classifies those me...

A: Accordingt o the given question;A researcher obtains hamstring measurements from a group of classmat...


Q: A group says that the mean daily lodging cost for a family traveling in Region 1 is the same as in R...

A: Given the data of mean daily lodging cost for a family traveling in Region 1 and Region 2.The claim ...