Presentation is loading. Please wait.

Presentation is loading. Please wait.

By: Ms. Naira. A=P(1+r/n) tn P = principal amount (the initial amount you borrow or deposit/invest) r = annual rate of interest (as a decimal) t = number.

Similar presentations


Presentation on theme: "By: Ms. Naira. A=P(1+r/n) tn P = principal amount (the initial amount you borrow or deposit/invest) r = annual rate of interest (as a decimal) t = number."— Presentation transcript:

1 By: Ms. Naira

2 A=P(1+r/n) tn P = principal amount (the initial amount you borrow or deposit/invest) r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed A = amount of money accumulated after n years, including interest. n = number of times the interest is compounded per year

3 A= P= R= N= T=

4

5

6

7 Click here for answer

8 A= P=R=N= T=

9 A=$50,000 P=?R=.08 N= 12 T=10 $50,000 = p(1+.08/12) 10(12) $50,000 = p( 1.008) 120 $50,000 = p(2.3095) Isolating a variable: divide both sides by the same amount $50,000/2.3095 = p(2.3095)/2.3095 $21,649.71= p In other words we need to invest $21,649.71 today so that in 10 years we have the $50,000 we want


Download ppt "By: Ms. Naira. A=P(1+r/n) tn P = principal amount (the initial amount you borrow or deposit/invest) r = annual rate of interest (as a decimal) t = number."

Similar presentations


Ads by Google