Explain why the amount of money in the account at the end of t years is given by the formula:
1 answer:
Answer:
Step-by-step explanation:
The initial amount invested is P0
Say it is compounded periodically either quarterly or monthly or semi annually with interest r%
If for a period interest is r%
Then after first period principal = principal+simple interest
=
where n is the no of times in a year it is compounded. n = 4 if quarterly, 12 if annually, etc
At the end of II period we have
Principal =
So for interest again the process is repeated
Thus we repeat this nt times which result in power with nt
Hence the formula
You might be interested in
Answer:
(Véase la explicación para mayores detalles/See the explanation for further details)
Step-by-step explanation:
a) Tres al cubo (Three to cube):
b) Seis al cubo (Six to cube):
c) Cinco al cuadrado (Five squared):
d) Ocho al cuadrado (Eight squared):
e) Dos a la quinta (Two to five):
f) Diez a la cuarta (Ten to four):