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Compound Interest

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Jenny Hubbard
Jenny Hubbard

Solving Compound Interest Problems

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COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you!
COMPOUND INTEREST DEFINITION Interest is paid on the principal and accumulated interest
COMPOUND INTEREST FORMULA amount at the end Principal (amount at start) annual interest rate (as a decimal) time (in years) number of times per year that interest in compounded
Find the amount that results from $500 invested at 8% compounded quarterly after a period of 2 years. Example 500 .08 4 4 (2)

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Compound Interest

  • 1. COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you!
  • 2. COMPOUND INTEREST DEFINITION Interest is paid on the principal and accumulated interest
  • 3. COMPOUND INTEREST FORMULA amount at the end Principal (amount at start) annual interest rate (as a decimal) time (in years) number of times per year that interest in compounded
  • 4. Find the amount that results from $500 invested at 8% compounded quarterly after a period of 2 years. Example 500 .08 4 4 (2)