# Answer

It appears that after *n* years, you will have dollars. In
other words, at the end of each year your balance from the previous
year is multiplied by (1 + *R*). This makes sense, since you retain
your original balance and obtain a factor of *R* more. Notice that
this formula works even for *n* = 0 (i.e., before any time has
passed), at which point you have *P* dollars.
Return to lesson.

*Joseph L. Zachary *

Hamlet Project

Department of Computer Science

University of Utah