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Compound Interest Formula
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year
Example:
An amount of $1,500.00 is deposited in a bank paying an annual interest rate of 4.3%, compounded quarterly. What is the balance after 6 years?
Solution:
Using the compound interest formula, we have thatP = 1500, r = 4.3/100 = 0.043, n = 4, t = 6. Therefore,
So, the balance after 6 years is approximately $1,938.84.
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How can compound interest be derived from simple interest?
Compound interest is simply simple interest except the amount of interest you owe is always added into the amount of money you borrowed before you calculate.Lets give an example.You borrowed a million from the bank at Year 2000 with interest rates of 5%.The formula for simple interest is PIN/100, where P is Principle (amount owed), I is interest rate (in percentage), N is the number of years.Year 2000: 1,000,000Year 2001: 1,000,000 * 5 * 1 / 100 = 50,000 (this is the interest)Year 2002: (1,000,000 + 50,000) * 5 * 1 / 100 = 52,500By the end of 2002, you would owe the bank 1,102,500(1,000,000 + 50,000 + 52,500)The formula for compound interest is P * (1 + I/100)N where P,I and N still refers to the same thing.Year 2000: 1,000,000Year 2001: 1,000,000 * (1+5/100)1 = 1,050,000Year 2002: 1,050,000 * (1+5/100)1 = 1,000,000 * (1+5/100)2 = 1,102,500
The concepts of simple interest and compound interest?
With simple interest, you just multiply the capital, the number of years, and the yearly interest rate. For example, for a capital of 10,000 dollars, 3% interest, 10 years, that would give you 10,000 x 3/100 x 10 = 3,000 dollars interest.With compound interest, after the end of every year, the interest is added to the capital, before calculating the interest for next year.In the example above, the first year you get 10,000 x 0.03 = 300 dollars. This is then added to the capital, before calculating the interest rate for the next year; so, the second year you get 10,300 x 0.03 = 309 dollars interest.
Formula transformation and give an example of formula?
explain formula transformation
Give an example for a CTL formula?
CTL formula: AG(p -> AFq) CTL* formula: AEAp LTL formula: AGFp
Can you give an example of closed form compound noun?
Some examples of closed compound nouns are:arrowrootbaseballcardboarddeadbeatelderberryfireplacegoalposthouseboaticebergjumpsuitkeepsakelunchboxmeatloafnotebookoutsideportholequartermasterrooftopsoapsudstenderfootunderdogviewpointwarthogyearbookzooplankton
Give the formula for the compound lithium perchlorate?
The formula for lithium perchlorate is LiClO4.
What does the formula tell us about a chemical compound?
The formula of a chemical compound tells us the types and number of atoms that are present within the compound. It provides information about the elements the compound is composed of and the ratio in which these elements are combined. Additionally, the formula can give us hints on the structure and properties of the compound.
How many atoms are represented in the formula?
Please provide the chemical formula so I can give you the correct answer.
Can you give me a sentence with the word compound in it?
Bus-stop is a compound noun. Water is a compound made of oxygen and hydrogen
Choose the empirical formula?
To determine the empirical formula of a compound, you need the molar masses of its elements and their ratio in the compound. Calculate the ratio of the elements in terms of whole numbers, which will give you the empirical formula.
What is the chemical name for the main compound in limestone Give the name not the formula?
The main compound in limestone is calcium carbonate.
How do ionic compounds and the empirical formula relate?
The empirical formula of an ionic compound shows the simplest whole number ratio of ions present in the compound. Ionic compounds are formed when cations and anions combine in such a way that the charges balance to create a neutral compound. The empirical formula reflects this balanced ratio of ions in the compound.
What is the formula of the compound formed from the ions of m1 and x1?
The formula of the compound formed from the ions M1+ and X1- would be MX. The charges must balance to give a neutral compound, so one cation and one anion are needed to form a stable ionic compound.
What is a formula unit and give example?
A formula unit is the smallest ratio of ions represented in an ionic compound. It is the simplest ratio of elements in a compound. For example, in table salt (NaCl), the formula unit is NaCl, representing one sodium ion (Na+) and one chloride ion (Cl-) in the compound.
What is the present continuous of give?
It is "is/are giving"
How do you identify and kinds of atoms in a given compound based n its chemical formula?
The chemical formula is representative for a molecule and give indication about the chemical composition.
How can compound interest be derived from simple interest?
Compound interest is simply simple interest except the amount of interest you owe is always added into the amount of money you borrowed before you calculate.Lets give an example.You borrowed a million from the bank at Year 2000 with interest rates of 5%.The formula for simple interest is PIN/100, where P is Principle (amount owed), I is interest rate (in percentage), N is the number of years.Year 2000: 1,000,000Year 2001: 1,000,000 * 5 * 1 / 100 = 50,000 (this is the interest)Year 2002: (1,000,000 + 50,000) * 5 * 1 / 100 = 52,500By the end of 2002, you would owe the bank 1,102,500(1,000,000 + 50,000 + 52,500)The formula for compound interest is P * (1 + I/100)N where P,I and N still refers to the same thing.Year 2000: 1,000,000Year 2001: 1,000,000 * (1+5/100)1 = 1,050,000Year 2002: 1,050,000 * (1+5/100)1 = 1,000,000 * (1+5/100)2 = 1,102,500
