How to Solve a Compound Interest Formula Word Problem | A = P(1 + r/n)^(tn)

In this lesson, we will learn how to solve a compound interest formula word problem. The compound interest formula is given as: A = P(1 + r/n)^(tn), where A is the future value, P is the present value or principal amount, r is the rate as a decimal, n is the number of compounding periods in a year, and t is the number of years.

[jjokal]

this helped me more than actual maths class. this just saved me, i understand this so well now! thank you so much. maths exams = aced

[niksspace]

Thank you for constantly supporting people in the comments. You make it so clear

[lomelisquad]

Thank you for this! I do have a question on your first example: If Jamie added $100 a month for the 5 years with the initial $3155, how would you find the total amount?

[monkey]

thank you for making this so easy to understand

[isabellebazzi]

thank you for getting to the point and acually Explanining

[tsm_sleek]

You're the bast man, thanks alot for your hard work :).

[katiemartin]

What do you do when you want to solve the T for time? For example if you put in 2, 500 and it is 6 percent quarterly, how long does it take to get 30, 000?

[keshsans]

Thank you i like how the profile picture gives the infotmation you need finally They just tell you how to do it and what the rn means

[Feelinlovewithyou]

thank, but if we dont know r = ? how to find it can you explain if we have everythings but except r

[dhanyams]

Awesome sir thank I'm 7 th standard and I have to learn this formula thank u

[donnabrade]

can you please guide me how for you to get that result 38 something?i cant get it.

[olliee]

What exactly does "r/n" mean or represent?

[bfhj]

What if I have a compound that is annually, what number do I use for n??

[SKY-eltl]

I still can't get the pendas part, can you help me with it ?