A financial calculation
Problem: A electricity connection has been secretly tapped for over Y years.
The total expence for this theft, not including interest rate, R, is the sum S.
The inflation rate, I, can be considered constant over all the years.
What is the formula for the total expence, when interest rate and inflation
are taken into consideration ?
Pls help me, I've been robbed :mad:
i is the inflation rate per period eg 0.03 (3%) per year
n is the number of periods (the number of years if you use an annual inflation rate).
^ means raised to the power.
Thank you very much for your reply.