Need an formula/equation for this scenario

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SUMMARY

The discussion centers on calculating the future value of an investment using the compound interest formula. The user invests $600 annually at an 8% interest rate, leading to a total accumulation formula of N = (P/r) * ((1 + r)^n - 1). The user initially attempted an incorrect formula but later corrected it to accurately reflect the total amount accumulated after n years. Key calculations for the first three years were provided, demonstrating the compounding effect of the interest.

PREREQUISITES
  • Understanding of compound interest principles
  • Familiarity with the formula A = P(1 + r)^n
  • Basic algebra skills for manipulating equations
  • Knowledge of annuities and their calculations
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Students in finance or mathematics, financial planners, and anyone interested in understanding investment growth through compound interest calculations.

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Homework Statement


I invest 600 every year for 8% compound interest
for etc. first yr 600* 1.08= 648

2nd yr
600+648= 1248
1248*1.08= 1347.84

3rd yr
1347.84+600=1947.84
1947*1.08=2102.74

and so on

Homework Equations



compounded interest formula is

P is the principal (the money you start with, your first deposit)

r is the annual rate of interest as a decimal (5% means r = 0.05)

n is the number of years you leave it on deposit

A is how much money you've accumulated after n years, including interest.

If the interest is compounded once a year:

A = P(1 + r)power of n

The Attempt at a Solution



i attempted A= nP(1+r)power of n

but there's some difference in the answers I am getting

please help correct my formula
 
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nvm i got it

P = sum deposited at the end of each year (beginning one year from when the annuity "starts")

r = the interest rate, as a decimal (5%, for example, is r = 0.05)

n = number of years the annuity has run

N = total amount accumulated at the end of n years.

N = (P/r)( (1 + r)n - 1)
 

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