Download presentation

Presentation is loading. Please wait.

Published byEfrain Frake Modified about 1 year ago

1
Compound Interest

2
Interest Definition: A charge for borrowed money generally a percentage of the borrowed amount. Context: A person makes a deposit with a financial institution, which promises a certain rate of interest per year, paid after specified intervals of time. This is a growth problem! Examples: Savings account, loans, credit cards, etc.

3
Compound Interest Definition: Interest charged on both the principal amount as well as on the interest already earned. When entering an equation into the calculator do not forget the parentheses.

4
Compound Interest Example Find an equation for the following context if the input is the number of years: Fred invests $12,000 in an account that offers 3.2% annual interest compounded semiannually. 3.2% = The initial value Decimal Rate Number of Intervals 2 times a year

5
Compound Interest Example Continued… Fred invests $12,000 in an account that offers 3.2% annual interest compounded semiannually. If there are no withdrawals, how much money is in the account after 5 years? x = 5 years

Similar presentations

© 2016 SlidePlayer.com Inc.

All rights reserved.

Ads by Google