Question

finance the compound interest formula is given by $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the amount, $p$ is the principal, $r$ is the rate, $n$ is the number of times interest is compounded per year, and $t$ is the time in years. write a sentence for the formula. the select choice equals the select choice times the quantity 1 plus rate select choice the number of times select choice is compounded per select choice, all raised to the number of times interest is compounded in a year times the number of select choice.

Explanation:

The compound - interest formula $A = P(1+\frac{r}{n})^{nt}$ shows that the final amount ($A$) is calculated by multiplying the principal amount ($P$) by the quantity of 1 plus the interest rate ($r$) divided by the number of compounding periods per year ($n$), all raised to the power of the product of the number of compounding periods per year ($n$) and the number of years ($t$).

Answer:

The amount equals the principal times the quantity 1 plus rate divided by the number of times interest is compounded per year, all raised to the number of times interest is compounded in a year times the number of years.