I can't remember the equation for the interest rate.
In all the videos I've watched they had something labeled "rs" what's that?
I forgot to add in the problems they give me the: I, P, And the T. that I know means time. I don't know the other 2.
ever hear of google?
To get the balance in the account after t years,
simple interest: A = P(1+rt)
compound interest: A = P(1 + r/n)^(nt)
The n here is the number of times per year the interest is compounded.
Thankyou!
"rs" likely refers to the nominal interest rate. To calculate the nominal interest rate, you need to know the interest rate per compounding period and the number of compounding periods per year.
The formula to calculate the nominal interest rate is:
Nominal Interest Rate = (Interest Rate per Compounding Period) x (Number of Compounding Periods per Year)
For example, if the interest rate per compounding period is 3% and there are 4 compounding periods per year, the nominal interest rate can be calculated as:
Nominal Interest Rate = 3% x 4 = 12%
In this example, the nominal interest rate would be 12%.
It's important to note that "rs" is just a placeholder symbol used in the videos you watched. The actual variable representing the nominal interest rate can vary depending on the context.