Ok so here's the question: Suppose you invest $15,000 at 7% annual interest. How much will there be if interest is calculated:
a. quarterly b. monthly c.continuously
So I know P= 15,000
R=0.07
N=
T=
This is where I kind of get confused.
Do I use A=P(1+r/n)^nt or A=Pert????
Thanks in advance for your time.
a. quarterly b. monthly c.continuously
So I know P= 15,000
R=0.07
N=
T=
This is where I kind of get confused.
Do I use A=P(1+r/n)^nt or A=Pert????
Thanks in advance for your time.
-
La La -
Only use Pe^(rt) for CONTINUOUS compounding
For quarterly and monthly use A=P(1+r/n)^nt
T= number of years
N= how many times per year interest is paid. Quarterly = 4. Monthly = 12. Semiannual = 2.
Hope that helps
Only use Pe^(rt) for CONTINUOUS compounding
For quarterly and monthly use A=P(1+r/n)^nt
T= number of years
N= how many times per year interest is paid. Quarterly = 4. Monthly = 12. Semiannual = 2.
Hope that helps