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Interest: Compound & Simple Neema Smith
What is the difference? ,[object Object],[object Object]
Compound Interest ,[object Object]
Example... $4,695.8 $ 175.35 $ 28.58 12 $4,871.15 $ 175.35 $ 28.58 11 $5,046.5 $ 175.35 $ 28.58 10 $5,221.85 $ 175.35 $ 28.58 9 $5,397.2 $ 175.35 $ 28.58 8 $5,572.55 $ 175.35 $ 28.58 7 $5,747.9 $ 175.35 $ 28.58 6 $5,923.25 $ 175.35 $ 28.58 5 $6,098.6 $ 175.35 $ 28.58 4 $6,273.95 $ 175.35 $ 28.58 3 $6,449.3 $ 175.35 $ 28.58 2 $6,624.65 $175.35 $28.58 1 Balance Principal Interest Month
Simple Interest ,[object Object],- If you leave your money in an account for less than a year, then you receive the fractional part of the full-year interest.
Example… $4,646.42 $183.63 $20.30 12 $4,830.05 $182.87 $21.07 11 $5,012.92 $182.10 $21.84 10 $5,195.02 $181.34 $22.60 9 $5,376.36 $180.58 $23.36 8 $5,556.94 $179.82 $24.11 7 $5,736.76 $179.07 $24.87 6 $5,915.83 $178.32 $25.62 5 $6,094.15 $177.57 $26.36 4 $6,271.72 $176.83 $27.11 3 $6,448.56 $176.09 $27.85 2 $6,624.65 $175.35 $28.58 1 Balance Principal Interest Month
The difference is… ,[object Object]

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Interest

  • 1. Interest: Compound & Simple Neema Smith
  • 2.
  • 3.
  • 4. Example... $4,695.8 $ 175.35 $ 28.58 12 $4,871.15 $ 175.35 $ 28.58 11 $5,046.5 $ 175.35 $ 28.58 10 $5,221.85 $ 175.35 $ 28.58 9 $5,397.2 $ 175.35 $ 28.58 8 $5,572.55 $ 175.35 $ 28.58 7 $5,747.9 $ 175.35 $ 28.58 6 $5,923.25 $ 175.35 $ 28.58 5 $6,098.6 $ 175.35 $ 28.58 4 $6,273.95 $ 175.35 $ 28.58 3 $6,449.3 $ 175.35 $ 28.58 2 $6,624.65 $175.35 $28.58 1 Balance Principal Interest Month
  • 5.
  • 6. Example… $4,646.42 $183.63 $20.30 12 $4,830.05 $182.87 $21.07 11 $5,012.92 $182.10 $21.84 10 $5,195.02 $181.34 $22.60 9 $5,376.36 $180.58 $23.36 8 $5,556.94 $179.82 $24.11 7 $5,736.76 $179.07 $24.87 6 $5,915.83 $178.32 $25.62 5 $6,094.15 $177.57 $26.36 4 $6,271.72 $176.83 $27.11 3 $6,448.56 $176.09 $27.85 2 $6,624.65 $175.35 $28.58 1 Balance Principal Interest Month
  • 7.