Simple Interest - Pre Calculus - Lecture Handout, Exercises of Calculus

It is the Lecture Handout of Pre Calculus which includes Finding Polynomial, Hand Notes, Distinguishing Relation, Power Function etc. Key important points are: Simple Interest, Hand Notes, Graphic Representation, Interest Rate, Principal

Typology: Exercises

2012/2013

Uploaded on 02/06/2013

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1/4 SECTION 4.6: COMPOUND INTEREST SIMPLE INTEREST: WHERE | = INTEREST MADE P = PRINCIPAL (AMT BORROWED/ INVESTED R = INTEREST RATE (DECIMAL FORM) T = TIME IN YEARS DRAWBACKS: 1. CAN ONLY MAKE INTEREST ON THE ORIGINAL INVESTMENT 2. INTEREST COMPUTED ONLY ONE TIME DURING INVESTMENT t COMPOUND INTEREST: A=P{+E)" WHERE A= AMOUNT PRESENTLY IN ACCOUNT P = PRINCIPAL (av. 6¢ brary ow ed) R = INTEREST RATE (de ermal) N = NUMBER OF COMPOUNDING PERIODS (TIMES INTEREST COMPUTED PER YEAR) T = TIME IN YEARS ADVANTAGES: 1. SINCE INTEREST COMPUTED MORE FREQUENTLY, CAN GROW FASTER 2. CAN MAKE INTEREST ON INTEREST