The Formula for Finding Compound Interest Is $A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$

Short Answer

The formula for finding compound interest is $A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$ where $\mathrm { A }$ is the accumulated amount, $P$ is the principal invested, $r$ is the rate of interest, $t$ is the time in years, and $n$ is the number of compounds each year. Find the accumulated amount if the principal invested is $\$ 5,000$ , the rate is $8 \%$ , the compounds each year is 4 (quarterly)! and the number of years is 5 .