# Chapter 8 - Personal Finance - 8.4 Compound Interest - Concept and Vocabulary Check - Page 520: 7

$P$, $A$, $t$, $r$, $n$

#### Work Step by Step

In the formula, the variable $P$ represents the amount that needs to be invested now in order to have $A$ dollars accumulated in $t$ years in an account that pays rate $r$ compounded $n$ times per year.

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