COMPOUND INTEREST

Each year, the calculation of the interest

RATE is increasing, the interest has its
interest. WePRINCIPAL
can use the formula below: NUMBER OF YEARS

𝑟 n
CI= P[(1 + ) -1]
100

COMPOUND INTEREST
FOR EXAMPLE
You go to the bank and barrow 16,000 pesos. They have told
you that the interest rate to your principal was 13% for about 4
years and the interest that they will apply to you is compound
interest. The question is what is the compound interest within 4
years?
n
𝑟 13 4
CI=CI=
16,000[(1
P[(1 + + )100
-1]) -1]
100
ANSWER: 10,080
 QUIZ: FIND THE SIMPLE INTEREST
P= 13,000 P= 33,000 P= 33,000
1 R= 10% 2 R= 11% 3 R= 12%
Y= 2 Y= 3 Y= 4
P= 3,000 P= 53,000 P= 63,000
4 R= 13% 5 R= 14% 6 R= 15%
Y= 5 Y= 6 Y= 7

P= 73,000 P= 31,000 P= 31,000

7 R= 16% 8 R= 17% 9 R= 18%
Y= 8 Y= 9 Y= 10
 P= 130,000 P= 31,000 P= 31,000
10 R= 19% 11 R= 20% 12 R= 21%
Y= 10 Y= 10 Y= 10

P= 31,000 P= 31,000 P= 31,000

13 R= 22% 14 R= 23% 15 R= 18%
Y= 10 Y= 10 Y= 11

P= 31,000 P= 31,000 P= 31,000

16 17 R= 18% 18 R= 18%
R= 18%
Y= 12 Y= 13 Y= 14
 P= 13,000 P= 30,000 P= 33,000
19 R= 11% 20 R= 12% 21 R= 11%
Y= 2 Y= 3 Y= 4
P= 30,000 P= 53,000 P= 63,000
22 R= 11% 23 R= 11% 24 R= 11%
Y= 5 Y= 6 Y= 7

P= 30,000 P= 83,000 P= 93,000

25 R= 11% 26 R= 11% 27 R= 11%
Y= 8 Y= 9 Y= 10
 P= 130,000 P= 93,000 P= 933,000
28 R= 19% 29 R= 20% 30 R= 21%
Y= 10 Y= 10 Y= 10

P= 93,000 P= 93,000 P= 93,000

31 32 R= 23% 33 R= 18%
R= 22%
Y= 10 Y= 10 Y= 11

P= 93,000 P= 93,000 P= 93,000

34 35 R= 18% 36 R= 18%
R= 18%
Y= 12 Y= 13 Y= 14
 P= 130,000 P= 93,000 P= 933,000
37 R= 20% 38 R= 21% 39 R= 22%
Y= 10 Y= 10 Y= 10

P= 93,000 P= 93,000 P= 93,000

40 41 R= 24% 42 R= 25%
R= 23%
Y= 10 Y= 10 Y= 11

P= 93,000 P= 93,000 P= 93,000

43 44 R= 12% 45 R= 13%
R= 11%
Y= 12 Y= 13 Y= 14
 QUIZ: FIND THE Compound INTEREST
P= 13,000 P= 33,000 P= 33,000
1 R= 10% 2 R= 11% 3 R= 12%
Y= 2 Y= 3 Y= 4
P= 3,000 P= 53,000 P= 63,000
4 R= 13% 5 R= 14% 6 R= 15%
Y= 5 Y= 6 Y= 7

P= 73,000 P= 31,000 P= 31,000

7 R= 16% 8 R= 17% 9 R= 18%
Y= 8 Y= 9 Y= 10
 P= 130,000 P= 31,000 P= 31,000
10 R= 19% 11 R= 20% 12 R= 21%
Y= 10 Y= 10 Y= 10

P= 31,000 P= 31,000 P= 31,000

13 R= 22% 14 R= 23% 15 R= 18%
Y= 10 Y= 10 Y= 11

P= 31,000 P= 31,000 P= 31,000

16 17 R= 18% 18 R= 18%
R= 18%
Y= 12 Y= 13 Y= 14
 P= 13,000 P= 30,000 P= 33,000
19 R= 11% 20 R= 12% 21 R= 11%
Y= 2 Y= 3 Y= 4
P= 30,000 P= 53,000 P= 63,000
22 R= 11% 23 R= 11% 24 R= 11%
Y= 5 Y= 6 Y= 7

P= 30,000 P= 83,000 P= 93,000

25 R= 11% 26 R= 11% 27 R= 11%
Y= 8 Y= 9 Y= 10
 P= 130,000 P= 93,000 P= 933,000
28 R= 19% 29 R= 20% 30 R= 21%
Y= 10 Y= 10 Y= 10

P= 93,000 P= 93,000 P= 93,000

31 32 R= 23% 33 R= 18%
R= 22%
Y= 10 Y= 10 Y= 11

P= 93,000 P= 93,000 P= 93,000

34 35 R= 18% 36 R= 18%
R= 18%
Y= 12 Y= 13 Y= 14
 P= 130,000 P= 93,000 P= 933,000
37 R= 20% 38 R= 21% 39 R= 22%
Y= 10 Y= 10 Y= 10

P= 93,000 P= 93,000 P= 93,000

40 41 R= 24% 42 R= 25%
R= 23%
Y= 10 Y= 10 Y= 11

P= 93,000 P= 93,000 P= 93,000

43 44 R= 12% 45 R= 13%
R= 11%
Y= 12 Y= 13 Y= 14