In the periodic compound interest formula Upper A equals Upper P (1 plus StartFraction r Over n EndFraction )Superscript nt , what does the variable n represent?

Question

asked Jul 21, 2021 27.4k views

1 Answer

Illusionx · Answer 1 · 2021-07-25T22:10:48+0000

Answer:

The variable n represents the number of times in a year in which we compound the interest rate

Explanation:

The periodic compound interest formula is given as;

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

The variable n represents the number of times in a year in which the interest rate is compounded