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Understanding Simple and Compound Interest

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Understanding Simple and Compound Interest

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Created by

Aleisha Altuna
Aleisha Altuna
Canada

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Understanding Simple and Compound Interest
 

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Understanding Simple and Compound InterestOnline version

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by Aleisha Altuna
1

Interest calculates interest based solely on the amount !

2

Interest calculates interest based on the amount , and periods !

3

The formula for simple interest is =

4

The formula for compound interest is = ( 1 + / n ) ^ ( )

5

The variable ( P ) stands for the Amount , also known as the amoun t

6

The variable ( ) represents the amount of time , also known as the of an investment

7

The variable , in the interest formula represents the number of times the interest is compounded per

8

The variable represents an interest rate , which is always expressed as a

 
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