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
Department of Computer Science
University of Utah