We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Modified over 4 years ago
Section 5.7 Compound Interest
A credit union pays interest of 4% per annum compounded quarterly on a certain savings plan. If $2000 is deposited in such a plan and the interest is left to accumulate, how much is in the account after 1 year?
Find the amount A that results from investing a principal P of $2000 at an annual rate r of 8% compounded continuously for a time t of 1 year.
The effective rate of interest is the equivalent annual simple rate of interest that would yield the same amount as compounding after 1 year.
(a)7% compounded monthly? (b) 6% compounded continuously?
What annual rate of interest compounded quarterly should you seek if you want to double your investment in 6 years?
(a)How long will it take for an investment to double in value if it earns 6% compounded continuously? (b) How long will it take to triple at this rate?
A) B) C) D)
Compound Interest II Money, where fashion continues.
4/29/2015Section 8.31 Section 8.3 Compound Interest Objectives 1.Use the compound interest formulas. 2.Calculate present value. 3.Understand and compute.
6.7 Compound Interest.
Sullivan PreCalculus Section 4.7 Compound Interest
Simple and Compound Interest. Simple Interest Interest is like “rent” on a loan. You borrow money (principal). You pay back all that you borrow plus more.
CONTINUOUSLY COMPOUNDED INTEREST FORMULA amount at the end Principal (amount at start) annual interest rate (as a decimal) time (in years)
8.4 Simple and Compound Interest
What is Interest? Interest is the amount earned on an investment or an account. Annually: A = P(1 + r) t P = principal amount (the initial amount you borrow.
Mathematics of finance
Simple Interest Formula I = PRT.
Compound Interest Essential Skill: Demonstrate Understanding of Concept.
Section 6.7 Compound Interest. Find the amount A that results from investing a principal P of $2000 at an annual rate r of 8% compounded continuously.
7-8 simple and compound interest
Compound Interest Section 5. Objectives Determine the future value of a lump sum of money Calculate effective rates of return Determine the present value.
SIMPLE INTEREST Interest is the amount paid for the use of money.
1. Definitions for Savings Account 2. Common Compounding Periods 3. New from Previous Balance 4. Present and Future Value 5. Simple Interest 6. Effective.
Advanced Precalculus Notes 4.7 Compound Interest
Copyright © 2015, 2011, 2008 Pearson Education, Inc. Chapter 4, Unit B, Slide 1 Managing Money 4.
Notes Over 7 – 8 1. Suppose you deposit $1000 in a savings account that earns 6% per year. Find the interest earned in two years. Simple Interest Formula.
Simple Interest Compound Interest. When we open a savings account, we are actually lending money to the bank or credit union. The bank or credit union.
© 2019 SlidePlayer.com Inc. All rights reserved.