Compound Interest

Front

Interest resulting from the periodic addition of simple interest to the principal amount.

Back

compound interest

Front

This refers to the number of times in a year the interest will be compounded.

Back

conversion period

Front

When interest is compounded quarterly, how many times is interest compounded in a year?

Back

four times

Front

This is called the interest rate per conversion.

Back

periodic rate

Front

If interest is compounded semiannually for 5 years, what is the total number of conversion periods?

Back

10

Front

What do you call the interest rate when compounded annually?

Back

effective

Front

What do you call two rates with different conversion periods but produce equal interest on the same principal at the same period of time?

Back

equivalent

Front

Find the total number of conversion periods if a given interest rate is compounded quarterly for 5 years.

Back

20

Front

Formula for finding the compound amount?

Back

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