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how to derive compund interest formula without numbers?

if you know how to do it with numbers than pls explain

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  • Bryce
    Lv 7
    4 years ago

    I had to use the number "1".

    r =1+i/n, r=annual increase in principal, i=annual interest rate, n=number of compoundings per year, t=years

    r*r*r*... (r * r, n times)= r^n

    r^(n*t)=(1+i/n)^(n*t)

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