Question

Explain why the amount of money in the account at the end of the first year is given by the formula with n as the exponent: P = P∨0 (1 + r/n)^n

Answer 1

This is the formula you use for someone investing in money. The formula is actually supposed to be: A=P(1+).

A is the total amount, P is the principal amount (the initial; original), r is percent (%) rate in decimal form, n is frequency, and t is the amount of years.

Explanation: