Banking Unit pt. 2

​ Compound Interest Formula

What does A variable Mean in compound formula

• Value. What we are solving for

• initial value

• # of payments each year

• annual interest

What does P variable mean in the compound formula

• Value. What we are solving for

• the initial value

• annual interest

• payments each year

What does r variable mean in the compound formula

• Value. What we are solving for

• the initial value

• annual interest

• payments each year

What does n variable mean in the compound formula

• how many years

• the initial value

• annual interest

• payments each year

What does t variable mean in the compound formula

• how many years

• the initial value

• annual interest

• payments each year

annual % rate borrowing cost

• Interest

• Deposit

• Withdrawl

• Fees

storing money to your account

• Interest

• Deposit

• Withdrawal

• Fees

taking money out of your account

• interest

• deposit

• withdrawal

• fees

charges for services

• interest

• deposit

• withdrawal

• fees