What key phrase suggests that the formula A=P×(1+(r)/(n))^n⁢t can be used to calculate interest earned on an investment?

The formula A = P(1 + r/n)^(nt) calculates compound interest, where interest is added to the balance at regular intervals and earns interest itself. Therefore, the key phrase is “compound interest.” Simple interest uses a different formula because it is calculated only on the original principal.

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