Section 1

We will set r = 0.08, n = 365 (compounding daily) and t = 5 so that i= .08/365 and N = 365(5) = 1825. But before we substitute these numbers, we solve for P algebraically in the compound interest formula by dividing both sides of the equation by the quantity, , as follows. ( ( ( After substitution, we obtain, ................
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