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Compound Interest

formula, variables and compound times

QuestionAnswer
compound interest Interest on Interest
simple interest Interest only on principal
Simple Interest Formula I = P x R x T
Compound Interest Formula A = P (1 + r/n) to the power of (n times t)
P Principal, the amount deposited in the bank
r Interest rate written as a decimal
t time in years
n the number of times, in a year, that you get interest
compounded quarterly interest 4 times a year
compounded monthly interest 12 times a year
compounded semi-monthly interest 2 times a year
compounded annually interest 1 time each year
Created by: cmphillips
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