Question

To calculate compound interest earnings, the formula requires that you know the amount of principal, the number of time periods, and

O the age of the depositor
O the amount of bank fees
o the interest rate
O the inflation rate

Answer 1

the interest rate.

Step-by-step explanation:

Compound interest is generally calculated based on the interest rate on a loan, principal and the accumulated interest gained from previous periods.

This ultimately implies that, to calculate compound interest earnings, the formula requires that you know the amount of principal, the number of time periods, and the interest rate.

To find the future value, we use the compound interest formula;

`A = P(1 + (r)/(n))^(nt)`

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.