1 / 8

3-4 EXPLORE COMPOUND INTEREST

3-4 EXPLORE COMPOUND INTEREST. OBJECTIVES. Understand the concept of getting interest on your interest. Compute compound interest using a table. compound interest annual compounding semiannual compounding quarterly compounding daily compounding crediting. Key Terms. Example 1.

vanhoy
Télécharger la présentation

3-4 EXPLORE COMPOUND INTEREST

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 3-4EXPLORE COMPOUND INTEREST OBJECTIVES Understandthe concept of getting interest on your interest. Computecompound interest using a table.

  2. compound interest annual compounding semiannual compounding quarterly compounding daily compounding crediting Key Terms

  3. Example 1 How much interest would $1,000 earn in one year at a rate of 6%, compounded annually? What would be the new balance?

  4. Example 2 Alex deposits $4,000 in a savings account that pays 5% interest, compounded semiannually. What is his balance after one year?

  5. EXAMPLE 3 How much interest does $3,000 earn in six months at an interest rate of 4%, compounded quarterly? What is the balance after six months?

  6. EXAMPLE 4 How much interest does $1,000 earn in one day at an interest rate of 6%, compounded daily? What is the balance after a day?

  7. CHECK YOUR UNDERSTANDING How much interest does x dollars earn in one day at an interest rate of 5%, compounded daily? Express the answer algebraically.

  8. Example 5 Jennifer has a bank account that compounds interest daily at a rate of 3.2%. On July 11, the principal is $1,234.98. She withdraws $200 for a car repair. She receives a $34 check from her health insurance company and deposits it. On July 12, she deposits her $345.77 paycheck. What is her balance at the end of the day on July 12?

More Related