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Solutions 1. a) \( \mathrm{A}=\mathrm{P}(1+i)^{n} \) \( \mathrm{~A}=? \quad \mathrm{P}=\mathrm{R} 1570 \)

Ask by Wyatt Tucker. in South Africa
Jan 11,2025

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To find \( \mathrm{A} \), use the formula \( \mathrm{A} = \mathrm{P} \times (1 + i)^n \). Plug in the principal \( \mathrm{P} = \mathrm{R}\,1570 \) and the known interest rate and number of periods to calculate \( \mathrm{A} \).

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The Deep Dive

The formula you’ve got there relates to compound interest, where \( A \) is the final amount, \( P \) is the principal amount (in this case, R 1570), \( i \) is the interest rate per period, and \( n \) is the number of periods. Just plug in your values for \( i \) and \( n \) to find out how much your initial investment grows. To make your calculations easier when applying the formula, always ensure you convert the interest rate into a decimal and keep track of the periods carefully. A common mistake is to miscalculate the total periods or incorrectly interpret the rate, which can lead to inflated or deflated results. Always double-check your numbers!

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