the accumulated amount of money saved over a period of timeS

the accumulated amount of money saved over a period of time

Solution

Accumulated value is the total amount including the capital invested and the interest it has earned over a period of time.

Let P be the initial investment,

r be the interest rate per period,

t be the number of periods over which amount is accumulated.

The accumulated amount A = P (1 + r)^t

Here the interest is compounded once per period.

If the interest is conpounded n times per period, then the accumulated amount will be

A = P (1 +r/n)^nt