Answer:
The compound interest formua is used to figure out how much interest will be paid on a loan or on an investment.
Step-by-step explanation:
P is Principal, the original amount of the loan or investment.
R is the rate, the percentage of interest charged, changed to a decimal.
T is Time, usually the number of years.
N is the number of times the interest is compounded, like 12 times in a year or 365 times per year for some credit cards.
