We said that the choice of which of the two formulas F V = P V ( 1 + r t ) and F V = P V ( 1 + i n ) use is a matter of convenience. Show that using the first formula to compute future value for a simple interest investment for n months at a monthly interest rate of i results in the second formula.
We said that the choice of which of the two formulas F V = P V ( 1 + r t ) and F V = P V ( 1 + i n ) use is a matter of convenience. Show that using the first formula to compute future value for a simple interest investment for n months at a monthly interest rate of i results in the second formula.
Solution Summary: The author explains how the formula FV=PV(1+rt) computes the future value of a simple interest investment for n months.
We said that the choice of which of the two formulas
F
V
=
P
V
(
1
+
r
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)
and
F
V
=
P
V
(
1
+
i
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)
use is a matter of convenience. Show that using the first formula to compute future value for a simple interest investment for n months at a monthly interest rate of i results in the second formula.
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Linear Equation | Solving Linear Equations | What is Linear Equation in one variable ?; Author: Najam Academy;https://www.youtube.com/watch?v=tHm3X_Ta_iE;License: Standard YouTube License, CC-BY