A P 1 r n n t r 12 100 0012. This is calculated by multiplying the 1 by 10 1 X 10 010 and adding the 010 to the initial dollar. A final amount P principal r interest rate or T how many years to compound Solving for A.
T 231 Fini sh solving the problem by dividing each side by 12.
However if we wanted to find out. The formula itself is as follows. The formula for the future value of money using simple interest is FV P 1 rt. F Pert The future value F equals the present value P times e Eulers Number raised to the rate time exponential.