Students will be able to
- recall the formula for calculating compound interest and understand what each of the individual variables represents,
- calculate the amount of interest earned or the total value of an investment after a
given time period, where
- interest is compounded annually,
- interest is compounded at an interval other than 1 year.
- solve associated compound interest problems, such as calculating the minimum time interval at which interest must be compounded in order to reach a certain value.
Students should already be familiar with
- simple interest,
- exponential growth.
Students will not cover
- interest compounded continuously.