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Front

What is the formula for compound interest?

Back

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

Front

How do you calculate the future value of an investment compounded monthly?

Back

Use the formula: A = P(1 + r/12)^(12t), where P is the principal, r is the annual interest rate, and t is the time in years.

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal and also on the accumulated interest from previous periods.

Front

What is the monthly interest rate if the annual interest rate is 7.5%?

Back

The monthly interest rate is 7.5% / 12 = 0.625% or 0.00625 in decimal form.

Front

How do you express a population growth model mathematically?

Back

The population after t years can be expressed as P(t) = P0(1 + r)^t, where P0 is the initial population and r is the growth rate.

Front

What is the quadratic formula?

Back

The quadratic formula is x = (-b ± √(b² - 4ac)) / (2a), used to find the roots of a quadratic equation ax² + bx + c = 0.

Front

How do you find the solutions of a quadratic equation using the quadratic formula?

Back

Identify coefficients a, b, and c from the equation, substitute them into the quadratic formula, and simplify to find the values of x.

Front

What does it mean for an interest rate to be compounded quarterly?

Back

It means that the interest is calculated and added to the principal four times a year.

Front

How do you convert an annual interest rate to a monthly rate?

Back

Divide the annual interest rate by 12.

Front

What is the effective annual rate (EAR)?

Back

The effective annual rate is the interest rate on an investment or loan that is compounded over a year, taking into account the effects of compounding.