The amount of compounded interest during 'n' interest periods is_________________?

Correct answer: A. p[(1+i)n - 1)]

  • A. p[(1+i)n - 1)]
  • B. p(1 + i)n
  • C. p(1 - i)n
  • D. p(1 + in)

Explanation

After n periods, the accumulated amount is p(1+i)^n, so the interest earned alone is p[(1+i)^n - 1]. The expression p(1+i)^n includes both the original principal and the interest.

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