What type of equation does the compound formula A= P(1+i)^n turn to if A, i and P are constants.

Expert Answers

An illustration of the letter 'A' in a speech bubbles

In the compound interest formula A = P(1 + i)^n where P is the initial principal, i is the rate of interest per term and n is the number of terms the deposit is maintained for. A gives the amount after n terms.

The values P, i and n are constants to start with. They are only being used to calculate A.

If A, i and P are constants, the formula can be used to calculate n.

It converts to n = (log A)/(log(1 + i))

If i. A and P are constants in the formula A = P(1 + i)^n, it can be used to determine n or the number the periods the deposit has to be maintained.

See eNotes Ad-Free

Start your 48-hour free trial to get access to more than 30,000 additional guides and more than 350,000 Homework Help questions answered by our experts.

Get 48 Hours Free Access
Approved by eNotes Editorial