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SAVING – Take Interest!

Learn the basics of simple interest using the formula A = P(1 + rt) and compound interest with the formula A = P(1 + r/n)^nY. Discover how interest is calculated annually and compounded multiple times a year.

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SAVING – Take Interest!

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  1. SAVING – Take Interest!

  2. SIMPLE INTEREST Simple Interest = Principle x rate x time Equation Principle + Interest: A = (Prt)+P P = principal amount (the initial amount you borrow or deposit) r  = annual rate of interest (as a decimal) t  = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest.

  3. COMPOUND INTEREST - Annually Interest Compounded Annually: A   =   P (1 + r)Y P = principal amount (the initial amount you borrow or deposit) r  = annual rate of interest (as a decimal) t  = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest. Y = number of years principle invested n  =  number of times the interest is compounded per year

  4. COMPOUND INTEREST Interest Compounded multiple times a year: A   =   P (1  +  r/n)Yn P = principal amount (the initial amount you borrow or deposit) r  = annual rate of interest (as a decimal) t  = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest. n  =  number of times the interest is compounded per year

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