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The interest value I of a principal P, after n number of years for an interest rate i and a future value F is given as:

Question

The interest value I of a principal P, after n number of years for an interest rate i and a future value F is given as:

I=FP I = F - P

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Solution

It seems like you've started to describe a formula but didn't finish. However, based on what you've provided, it sounds like you're referring to the formula for compound interest. The formula for compound interest is:

F = P(1 + i)^n

Where:

  • F is the future value of the investment/loan, including interest
  • P is the principal investment amount (the initial deposit or loan amount)
  • i is the annual interest rate (in decimal)
  • n is the number of years the money is invested or borrowed for

If you want to find the interest value (I), you can rearrange the formula to:

I = F - P

This is because the interest is the future value minus the principal.

Please provide more information if you were referring to a different formula or concept.

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