Interest Calculations and Financial Literacy

Front

Compound interest calculation

Back

Compound interest is calculated on the principal amount plus any previous interest earned.

Front

Account balance after 30 months with compound interest

Back

Calculate the total amount using the compound interest formula and subtract the principal to find the interest.

Front

Joey's combined account balance after 10 years

Back

Calculate the total for both accounts using their respective interest rates and add them together.

Front

Simple interest vs. compound interest

Back

Simple interest is calculated on the principal only, while compound interest includes previous interest.

Front

Formula for simple interest

Back

Interest = Principal x Rate x Time

Front

Effect of compound interest over time

Back

Compound interest grows faster over time compared to simple interest.

Front

Principal amount for Joey's accounts

Back

$6,000 each

Front

Factors affecting money growth: Time.

Back

The longer the time, the more money can grow due to compounding.

Front

Jessie's $32,000 car loan options: 3-year term or 5-year term. Which has lower total repayment?

Back

The 5-year term has lower monthly payments but higher total repayment.

Front

Darnell's savings needed for the first year after scholarships and family contribution.

Back

$1,480