Question

Assuming that n 1 , rewrite the compound interest equation B t 900 1.185 t in the general form.

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\\ r=rate\to r\%\to (r)/(100)\\ n= \begin{array}{llll} \textit{times it compounds per year} \end{array}\\ t=year \end{cases}`


`\bf 1.185\implies 1+0.185\qquad\quad and\quad n=1 \\\\\\ A=P\left(1+(r)/(n)\right)^(nt)\implies A=P\left(1+0.185\right)^(nt)\implies A=P\left(1+(0.185)/(1)\right)^(1\cdot t)`

so, the percentage of the rate is 0.185, what's that as a percentage? well, 0.185 * 100, 18.5%.