The difference, FV-P, yields the amount of compound interest earned on an investment made at any particular compound rate, r, according to your textbook.

Question

Quizplus · Accepted Answer

FV represents the future value of the investment, P represents the principal amount initially invested, and the difference (FV-P) indeed yields the amount of compound interest earned on the investment at a compound rate r.

The Difference, FV-P, Yields the Amount of Compound Interest Earned