## sasogeek Group Title 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 $$\large S=P(1+ \frac{r}{100k})^kt$$ 2 years ago 2 years ago

1. sasogeek

Use this formula to show that if an interest rate of r% is compounded k times a year, then after t years $$\large S=P(1+\frac{r}{100k})^{kt}$$

2. sasogeek

i made a mistake with the "t" in the initial question, corrected above :)

3. across

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$S=P\left(1+\frac{r}{100}\right)^n.$

4. across

That's a hint, by the way.

5. sasogeek

yeah i noticed :) thanks x