Finding an Interest Rate to Match Given Goals (5.4.3) Flashcards
1
Q
• The value of an investment over time is described by an exponential equation.
A
• The value of an investment over time is described by an exponential equation.
2
Q
• The compound interest formula: A = P[1+(r/m)]^mt.
A
• The compound interest formula: A = P[1+(r/m)]^mt.
3
Q
• You can use the compound interest formula to solve for interest rates given goals for the future value of an investment.
A
• You can use the compound interest formula to solve for interest rates given goals for the future value of an investment.