Lesson: Compound Interest Mathematics

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.