An investment pays 8% interest, compounded annualy.

Write an ewuatiin that expressed the amount A, of the investment as a function of time, t, in years

1 answer

A = P(1.08)^t
where P is the initial investment or "principle"

If t is not an integer number of years, the next lower integer must be used, since interest is only compunded at the end of a year in this example. Some banks and bond transfer agents will credit partial-year interest up to the time of withdrawal, however.
Similar Questions
  1. An investment pays 8% interest, compounded annually.a) write an equation that expresses the amount, A, of the investment as a
    1. answers icon 5 answers
  2. An investment pays 3.5 percent interest, compounded quarterly.a) write an equation to express the amount A, of the investment as
    1. answers icon 2 answers
  3. Continuously Compounded Interest Quick Check5 of 55 of 5 Items Question Which investment will earn the most amount of money?(1
    1. answers icon 1 answer
    1. answers icon 2 answers
more similar questions