## Intermediate Algebra for College Students (7th Edition)

Compound interest, $A$, is computed by multiplying the principal amount, $P$ by the sum of $1$ and the annual interest rate, $r$ raised by the time of investment $t$. $A = P(1 + r)^t$
Compound interest, $A$, is computed by multiplying the principal amount, $P$ by the sum of $1$ and the annual interest rate, $r$ raised by the time of investment $t$. $A = P(1 + r)^t$