Question

1. what does p represent in the formula for compound interest?

a. initial investment

b. interest rate

c. number of times compounded per year

d. time in years

Explanation:

The compound interest formula is typically $A = P(1 + \frac{r}{n})^{nt}$, where:

• $P$ is the principal amount, which is the initial investment or the initial sum of money.
• $r$ represents the interest rate, $n$ is the number of times compounded per year, and $t$ is the time in years. So, $P$ stands for the initial investment.

Answer:

a. Initial investment