Using A = P(1 + r/n)^(nt), find value of $6K after 20 yr at

[npaggs]

So using A = P(1 + r/n)^nt determine how much the investment of $6000 will be worth after 20 years if the company pays 5% interest compounded every four months

I guess i'm just confused on the placement of the numbers. Would 6000 equal A or P, would 20 equal n or t, and would 3 (from 12 months divided by four months) equal n or t. I know that r is .05

thanks in advance

 

[Deleted member 4993]

Re: Need help with Compound interest word problems

So using A = P(1 + r/n)^nt determine how much the investment of $6000 will be worth after 20 years if the company pays 5% interest compounded every four months

I guess i'm just confused on the placement of the numbers. Would 6000 equal A or P, would 20 equal n or t, and would 3 (from 12 months divided by four months) equal n or t. I know that r is .05

thanks in advance

Please define the variables A, P, r, n & t. Consult your textbook where this equation has been discussed in detail.