What is p=1000(1+0.053/12)^12t

Question

From Carnegie learning in workbook

Answer 1

It is an interest rate problem

p represents the final amount

$1000 is the starting amount

.053 = 5.3% (rate)

12 means monthly

t is how many years

So, it means how much would you have if you invested $1000 at a rate of 5.3% compounded monthly for t years.