Compound

Interest
Definition-

Earnings calculated on the __principal_____

amount and accumulated __interest_____.
Formula-

 1 

= account balance also equals
(__principal___ + __interest___)
 = Principal (amount _starting_)
 = rate (convert % to _decimal__)
 = time (in _years____)
Example-Determine the balance in the account if
you deposited $4,000 at an interest rate of 3.4%
compounded annually for 3 years and 6 months.
P = 4,000
needs to be yrs
     .  .
r = 0.034
[#months 12]
  $, . 
t = 3.5
6 12  0.5