Compound Interest Notes. The payment might be yearly half yearly quarterly monthly daily etc. 1200 invested at a rate of 2 compounded quarterly.
It s important to note with simple interest the amount earned will stay the same every year. Therefore the solution has three parts one for each year. For example if you were to save 200 at 3 simple interest you would earn 6 per year every year.
P 1 i n 1 where p.
The text below is just to refresh your memories. Finds the future value where. Interest is payment from a borrower to a lender of an amount above repayment of the principal sum amount. The total money paid back by the borrower to the lender is called the amount.
