New 2024 Compound Interest find A, the amount in the account

Front

What is compound interest?

Back

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Front

How do you calculate the total amount (A) in an account with compound interest?

Back

A = P(1 + r/n)^(nt), where P is the principal amount, r is the annual interest rate (decimal), n is the number of times interest is compounded per year, and t is the number of years.

Front

What does the variable 'P' represent in the compound interest formula?

Back

'P' represents the principal amount, which is the initial sum of money deposited or borrowed.

Front

What does the variable 'r' represent in the compound interest formula?

Back

'r' represents the annual interest rate expressed as a decimal.

Front

What does the variable 'n' represent in the compound interest formula?

Back

'n' represents the number of times that interest is compounded per year.

Front

What does the variable 't' represent in the compound interest formula?

Back

't' represents the time the money is invested or borrowed for, in years.

Front

If Alex owes $1000 with a compound interest rate of 21.5% for 3 years, how much will he pay?

Back

$1793.61

Front

If Mr. Freeman owes $1600 with a compound interest rate of 12.6% for 3.5 years, how much will he pay?

Back

$2423.85

Front

If Coach Levens owes $5000 with a compound interest rate of 15.5% for 3 years, how much will he pay?

Back

$7703.99

Front

If Mrs. Zavala owes $800 with a compound interest rate of 11.25% for 7 years, how much will she pay?

Back

$1687.29