![]() ![]() ![]() The following table shows the compound interest that results as the number of compounding periods increases:Īs the table shows, as n increases in size, the limiting value of A is the special number If the interest rate is compounded n times per year, the compounded amount as we saw before is given by: A = P(1+ r/n) nt Find the new amount after two years.Įx2:Suppose that $5000 is deposited in a saving account at the rate of 6% per year. Chapter 4 Handout Chapter 4 Class HandoutĮx1: If $1000 is invested now with simple interest of 8% per year. ![]()
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