Question

When a bank account pays compound interest, it pays interest not only on the principal amount that was deposited into the account, but also on the interest that has accumulated over time. Suppose you want to deposit some money into a savings account, and let the account earn compound interest for a certain number of years. The formula for calculating the balance of the account after a specified number of years is:

Answer 1

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

A = Amount

P = Interest rate

R = interest rate

N = number of years

m = number of compounding

Step-by-step explanation: