Answer:
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Step-by-step explanation:
Given the following data;
Present value, P = $300
Interest rate, r = 8%
Number of times, n = 1/4
Note: Future value = 2 * P = 2*300 = $600
Compound interest is generally calculated based on the interest rate on a loan, principal and the accumulated interest gained from previous periods. This interest is compounded for a certain number of times such as daily, weekly, quarterly or annually.
To find how long she would have to invest her money in order to double it, we would use the compound interest formula;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
