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.

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2
Q

• The compound interest formula: A = P[1+(r/m)]^mt.

A

• The compound interest formula: A = P[1+(r/m)]^mt.

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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.

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