The function A=P(1+rn)nt

Question

, where A is the amount of money in the account after compounding, P is the principal, r is the interest rate expressed as a decimal, n is the number of compounding periods, and t is time in years used to calculate the balance in an account with compound interest.

Select the correct answer from the list.

(1 point)
The function is a
function.

Answer 1

The function \( A = P(1 + rn)nt \) is a compound interest function.

However, it seems there may be a mistake in the formulation you've provided, as the standard format for compound interest is typically written as:

\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]

If we are strictly adhering to the provided function form, it still represents a concept related to financial growth over time under compound interest calculations.