Simple vs. Compound Interest

0.0(0)
studied byStudied by 1 person
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/3

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

4 Terms

1
New cards

Simple interest

Interest calculated only on the original principal amount of a loan or 8nvestmwnt, and not on any accumulated interest

2
New cards

Formula for simple interest

P x R x T = I

P = Principal

R = Interest Rate

T = Time

I = Simple Interest

3
New cards

Compound interest

The interest you earn on interest

4
New cards

Formula for compound interest

A = Final amount

P = Initial principal balance

r = Number of times applied per time period

n = number of times interest applied per time period

t = number of time periods elapsed

<p>A = Final amount</p><p>P = Initial principal balance</p><p>r = Number of times applied per time period</p><p>n = number of times interest applied per time period</p><p>t = number of time periods elapsed</p>