Korey starts a small carwash business to save up some cash. He decides to offer two different price packages to his clients. Pac
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Answer:
1. CI = P (1 + )^ n - P
CI = A - P
Where P is Principal
R is interest rate
n is number of years
2. a. Semi annually - four times in a year
b. Monthly - two times in a year
c. annually - once in a year
Step-by-step explanation:
1. Money is said to be lent at compound interest , when the interest has become due at certain fixed period say, one year, half year, etc.., is given not paid to money lender, but is added to sum lent . The amount thus obtained become principal for next month and this process repeat until last period .
i.e CI = Final period - Initial period
or CI = A - P
or CI = P(1+ ) ^n - P
2. (a) Semi annually
A = P (1 + )^ n × 4
(b) Monthly
A = P (1 + ) ^ n × 2
(c) Annually
A = P (1 + ) ^ n