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Compound Interest Formulas
The interest of a compound interest investment or loan can be computed with the formula
I= A - P(where A is given below).
The end amount of a compound interest investment or loan can be computed with the formula
A = P(1+1).
Use these formulas to evaluate the amounts indicated below.
Let P = $5, 100, r = 8.2%, n= 2, and t = 3 years. Determine the interest, I, at the end of 3
years.
Interest = $
dollars
Let P = $6, 800, r = 6.7%, n = 4, and t = 5 years. Determine the total end amount, A, at the
end of 5 years.
End Amount = $
dollars
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