1. COMPOUND INTEREST
Since this section involves what can happen to your money, it should be of INTEREST to you! 

2. COMPOUND INTEREST FORMULA
annual interest rate (as a decimal)
Principal (amount at start)
time (in years)
amount at the end
number of times per year that interest in compounded

3. Example 1
Find the amount that results from $500 invested at 8% compounded quarterly after a period of 2 years. 4
(2)
.08
500 4

4. Example 2
Suppose you invest $32,000 into a certificate of deposit that has an annual interest rate of 5.2% compounded annually. Find the total amount after 3 years.

5. Example 3
$800 is invested at 7% for 6 years. Find the interest if it is compounded daily.

6. Example 4
$32000 is invested at 10% for 2 years. Would you earn more money in your investment if the interest was compounded semiannually or monthly?

7. Example 5
Iggy invested $12,000 with an interest rate of 8% compounded annually. How long will it take her to earn $17,631.94?

8. Example 6
Vinnie invested $1000 with a interest rate of 6% compounded semiannually. How long will it take Vinnie to double his investment?

9. Example 7
Joey invested $13200, compounded quarterly, and after 7 years, he had earned $ What was Joey’s interest rate?

10. Example 8
Anthony needs $3300 in 4 years so he can install an in-ground pool in his back yard. If he invests money at an interest rate of 11% compounded daily, how much money should he invest?

11. Example 9
Caesar is about to graduate high school. His father gives him two options:
He can have $2500, invested at 8% compounded quarterly, and receive the money in 5 years
He can agree to a flat sum of $3800 in 5 years. Which option should Caesar take?