what does the a stand for in the compound interest formula
surely your text explains this.
A = amount
In the compound interest formula, the "a" typically represents the future amount or future value of the investment. The formula for compound interest is:
A = P(1 + r/n)^(nt)
- A represents the future amount or future value.
- P is the principal amount, which is the initial investment.
- r is the annual interest rate expressed as a decimal.
- n represents the number of times that interest is compounded per year.
- t is the number of years the money is invested for.
To calculate the future amount using the compound interest formula, plug in the values for P, r, n, and t, and solve for A.