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  • Bank Interest Rate

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    zulimaracevedo
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    Principal Amount Interest Year 1 Year 2 Year 3 Year 4 Year 5 Value after many periods Interest rate; in this case its constant Number ofyears Number of years its calculated.

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    Bank interest rate

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    Principal Amount Interest Year 1 Year 2 Year 3 Year 4 Year 5 Value after many periods Interest rate; in this case its constant Number ofyears Number of years its calculated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    14 views2 pages

    Bank Interest Rate

    Uploaded by

    zulimaracevedo
    Principal Amount Interest Year 1 Year 2 Year 3 Year 4 Year 5 Value after many periods Interest rate; in this case its constant Number ofyears Number of years its calculated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Principal Amount $2,000

    Interest 5.00%

    Interest Amount Total


    Year 1 5.00% 2,000.00 2,100.00
    Year 2 5.00% 2,100.00 2,205.00
    Year 3 5.00% 2,205.00 2,315.25
    Year 4 5.00% 2,315.25 2,431.01
    Year 5 5.00% 2,431.01 2,552.56

    Formula
    Pn = P * (1 + M) ^ (N * M)
    Total amount earned P Value after many periods
    $2,552.56 I Interest rate; in this case its constant
    N Number ofyears
    M Number of years its calculated
    <-- Total Amount Earned

    e after many periods


    ate; in this case its constant
    Number ofyears
    r of years its calculated

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