Explain this!
Junior Member
- Joined
- Feb 7, 2019
- Messages
- 164
I am curious to know how the compound interest formula is expressed as P(1 + r)t.
The simple interest formula, P(1 + rt), is derived from P + Prt.
Is the compound interest formula, P(1 + r)t, derived from (P + Pr)t?
I searched online and in a few textbooks, but I could not determine how the compound interest formula becomes P(1 + r)t.
The simple interest formula, P(1 + rt), is derived from P + Prt.
Is the compound interest formula, P(1 + r)t, derived from (P + Pr)t?
I searched online and in a few textbooks, but I could not determine how the compound interest formula becomes P(1 + r)t.