a bank account balance for an account with an initial deposit of P dollars earns interest at an annual rate of r. The amount of money in the account after n years is described using the follwoing expression P (1+r). What effect, if any, does increasing the value of r have on the amount of money after n years?

Question

Dean Haynes

Business

20 August, 19:02

a bank account balance for an account with an initial deposit of P dollars earns interest at an annual rate of r. The amount of money in the account after n years is described using the follwoing expression P (1+r). What effect, if any, does increasing the value of r have on the amount of money after n years?

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Answers (1)

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Hadley Irwin · Answer 1

If iincrease the value of r. The amount of money after n years increase.

The bank pays you more interest

Explanation:

Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.