Step-by-step solved example
P0 = 100,000, r = 2.0%/yr, n = 10 yr. Find P.
1. Compound factor
(1.02)^{10} = 1.21899.
2. Population
P = 100,000 × 1.219 = 121,900.
Answer: P ≈ 121,900
P0 = 100,000, r = 2.0%/yr, n = 10 yr. Find P.
1. Compound factor
(1.02)^{10} = 1.21899.
2. Population
P = 100,000 × 1.219 = 121,900.
Answer: P ≈ 121,900
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