Lesson 3: Compound Interest
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Last updated 8:19 AM on 11/16/25
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5 Terms
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Compound Interest
interest is computed on the principal and also on the accumulated past interests
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Maturity Value or Future Value(F)
amount after (t) years that the lender receieved on the maturity period
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Maturity Value Formula
F= P(1 + r) raised to t
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Compound Interest Formula
= F-P
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Principal Value or the Present Value
P= F over (divided by) (1+ r) raised to t
Note 
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