- #1
cracker
- 37
- 0
Today I was watching my sister do her Financial homework and I tryed to do one of them problems it said something about haveing 5000 bucks at 9% interest for 6 years and you had to find how much you would have.
And so I tryed to use the compound interest formula P=A(1+(r/n)^rt but we both got totaly different anwers. She did it on a standar issued financial caculator.
So is that the formula for compound interest? P=A(1+(r/n)^rt. And is this how you plug it in? P=5,000(1+(.09/6)^(.09*6)
Also what are other interest raletaed equations and state what goes in the variables.
All the other ones that I know are:
Compound Interest: P=A(1+(r/n)^rt
Compound Interest Continusly: P=e^rt
Rule of 72
Rule of 82
Simple Interest: You don't really need a formula for this one, all that happens is that your you only earn interest on your original amound earns interst.
And so I tryed to use the compound interest formula P=A(1+(r/n)^rt but we both got totaly different anwers. She did it on a standar issued financial caculator.
So is that the formula for compound interest? P=A(1+(r/n)^rt. And is this how you plug it in? P=5,000(1+(.09/6)^(.09*6)
Also what are other interest raletaed equations and state what goes in the variables.
All the other ones that I know are:
Compound Interest: P=A(1+(r/n)^rt
Compound Interest Continusly: P=e^rt
Rule of 72
Rule of 82
Simple Interest: You don't really need a formula for this one, all that happens is that your you only earn interest on your original amound earns interst.