2+2 does not equal 5 therefore it equals 4 ... ther raoif adfas df a sdfa sdf s df sd f s fd sdfs d f We hope your visit to math.com brings you a greater love of mathematics, both for its beauty and its power to help solve everyday problems.
Einstein, Albert (1879-1955)
Do not worry about your difficulties in mathematics, I assure you that mine are greater.
Dirac, Paul Adrien Maurice (1902-1984)
Mathematics is the tool specially suited for dealing with abstract concepts of any kind and there is no limit to its power in this field.
Egrafov, M.
If you ask mathematicians what they do, you always get the same answer. They think. They think about difficult and unusual problems. They do not think about ordinary problems: they just write down the answers. Interest and Exponential Growth
(Math | General | Interest and Exponential Growth)
The Compound Interest Equation
P = C (1 + r/n) nt
where P = future value C = initial deposit r = interest rate (expressed as a fraction: eg. 0.06) n = # of times per year interest is compounded t = number of years invested
Simplified Compound Interest Equation
When interest is only compounded once per year (n=1), the equation simplifies to:
P = C (1 + r) t
Continuous Compound Interest
When interest is compounded continually (i.e. n --> ), the compound interest equation takes the form:
P = C e rt
Demonstration of Various Compounding
The following table shows the final principal (P), after t = 1 year, of an account initially with C = $10000, at 6% interest rate, with the given compounding (n). As is shown, the method of compounding has little effect. n P
1 (yearly) $ 10600.00
2 (semiannually) $ 10609.00
4 (quarterly) $ 10613.64
12 (monthly) $ 10616.78
52 (weekly) $ 10618.00
365 (daily) $ 10618.31 continuous $ 10618.37
Loan Balance
Situation: A person initially borrows an amount A and in