Calculating Compound Interest for $1000 with 1% APR
How can you calculate the amount in the account after 1000 years with an initial amount of $1000 and a 1% APR?
What dynamical system would you use to figure this out?
Calculating Compound Interest for $1000 with 1% APR
To calculate the amount in the account after 1000 years with an initial amount of $1000 and a 1% annual percentage rate (APR), you can use the formula for compound interest: A = P(1 + r/n)^(nt). Plugging in the values, the final amount is approximately $27,182.82.
To calculate the amount in the account after 1000 years with an initial amount of $1000 and a 1% Annual Percentage Rate (APR), we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where
- A is the final amount
- P is the principal (initial amount)
- r is the interest rate (expressed as a decimal)
- n is the number of times interest is compounded per year
- t is the number of years
Plugging in the values:
A = 1000(1 + 0.01/1)^(1*1000)
A = 1000(1 + 0.01)^1000
Using a calculator or spreadsheet, the final amount is approximately $27,182.82.