Formulas Flashcards
1
Q
Periodic formula
A
A = P ( 1 ? r/n ) ^nt
2
Q
Annual formula
A
A = P(1+r)^t
3
Q
Continuous formula
A
A = Pe^rt
4
Q
When do you use periodic vs annual formula?
A
Periodic = when the interest is compounded more frequently than once a year
Annual = when interest is compounded once a year
