Time Period Algebra Arithmetic

After 1 yr A=P(l+r) A=1000(1.10) = $1100
After 2 yr A=[P(l+r)](l+r) = P(l+r)^2 A=1100(1.10) = $1210
After 3 yr A=[P(l+r)^2](l+r) = P(l+r)^3 A=1210(1.10) = $1331

Compund Interest Formula{Interest Compounded Annually}: A=P(1+r)^t
Compund Interest Formula{Interest Compounded n Times per year}: A=P(1 + r/n)^[nt]

Number of Compoundings, n Amount, (1 + 1/n)^n

n = 1 (annually) (1 + 1/1)^1 = 2
n = 2 (semiannually) (1 + 1/2)^2 = 2.25
n = 4 (quartely) (1 + 1/4)^4 = approx-> 2.44
n = 12 (monthly) (1 + 1/12)^12 = approx-> 2.61