For a uniform deposit of d per compounding period and an interest rate i per period, the amount A accumulated after n periods is given by the SAVINGS FORMULA:
A= d[(1+i)^n - 1/i]
For more information, refer to pages 772-776
Paideia's 2012 Discrete Math Class
About the Savings Formula, close, but if I'm not mistaken not quite.
ReplyDeleteA= d[(1+i)^n - 1/i] according to this formula, and PEMDAS, you would do (1+i)^n minus 1/i, when in actuality we want to divide (1+i)^n-1 by i, so...
A= d[((1+i)^n - 1)/i]
Yes Luke! You're correct!
ReplyDelete