Which formula for compound interest??

[Charles_Darwin]

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I've been using DAT Genius and Bootcamp, and both use a different formula for calculating compound interest.

Bootcamp's

DAT Genius

A = P(1+r)^n

Which one am I supposed to use for the DAT..?

 

[DMikes]

Genius' appears to be a simplified form of the equation for compounding interest. As long as you know how compounding interest works, you really don't even need the equation.

you likely will only need the DAT genius formula but I do recommend understanding how it works.

$1,000 increases by 10% every week

Week 0: $1,000
Week 1: 1,000 + (1,000*.1) = 1,100
Week 2: 1,100 + (1,100 *.1) = 1,210
Week 3: 1,210 + (1,210 * .1) = 1,331
etc.