Chapter 3 More Compound Interest Topics Form

Instructions and help about Chapter 3 More Compound Interest Topics

in this video we're going to work on some problems associated with compound interest like this one luke puts a thousand dollars in an account that pays an annual interest of nine percent what will be the value of the account after 10 years so the formula that we need to use is this one a which is the final account value equals p the principal or the amount that he invests times 1 plus r over n raised to the nt r is the interest rate as a decimal n is the number of times interest is credited to an account on an annual basis or per year rather so let's say if the account is credited with interest only once per year and is one if it's compounded quarterly that is if the account receives interest four times a year and it's four if it's compounded weekly if the account receives interest every week then n is 52 because there's 52 weeks per year so n is the number of times the account is credited with interest per year and t is the time in years so in this problem the amount invested is a tho