Here's the question you clicked on:
sasogeek
if a principal, P, is invested at r% interest compounded annually then its future value, S, after n years is given by \(\large S=P(1+ \frac{r}{100})^n \) Use this formula to show that if an interest rate of r% is compounded k times a year, then after t years \(\large S=P(1+ \frac{r}{100k})^kt \)
Use this formula to show that if an interest rate of r% is compounded k times a year, then after t years \(\large S=P(1+\frac{r}{100k})^{kt} \)
i made a mistake with the "t" in the initial question, corrected above :)
In the formula\[S=P\left(1+\frac{r}{100k}\right)^{kt},\]"compounded anually" translates to \(k=1\), and if you let \(n=t\), then you are left with\[S=P\left(1+\frac{r}{100}\right)^n.\]
That's a hint, by the way.
yeah i noticed :) thanks x