## LilRyG 3 years ago How do I set this p? Use the compound interest formula to compute the total amount accumulated. $10,000 for 20 years at 5% compounded annually. A.$20,000.00 B. $25,269.50 C.$19,500.00 D. $26,532.98 • This Question is Closed 1. timo86m post the formula 2. jabberwock A=P(1+r/n)^(nt) 3. eliassaab $P= P_0\left( 1 + r) \right)^n$ 4. jabberwock r as a decimal rather than a percentage, n as the number of compoundings per year, and t as the time in years. 5. eliassaab $10000(1.05)^{20}$ 6. jabberwock Looks right 7. eliassaab .$26,532.98

8. timo86m

10,000 *(1+.05)^(20) D

9. LilRyG

that s 2 diferent formulas you guys are givin me. so witch one is it?

10. jabberwock

Yep. That looks right. @LilRyG - They're both right

11. timo86m

well the one with the n the n is just one. :)

12. jabberwock

Except n means something different in her formula.

13. jabberwock

n represents the number of years. Hers is only good for annual compounding.

14. timo86m

A=P(1+r/n)^(nt) the n is used to manipulate it to yearly quarterly or monthly

15. timo86m

with 1 it is yearly

16. timo86m

with n=12 montly n=12/4 quarterly

17. LilRyG

okay thank you guys!!

18. timo86m