Ch 7 General Word Problems Flashcards
(5 cards)
1
Q
Formula simple interest
A
Interest = principal x rate x time
2
Q
If you were to calculate simple annual interest, but the time in less than a year, in this case 10 months, what would you use as “time” in the formula
A
10/12
3
Q
Formula compound interest rate
A
A = P (1+r/n)^nt
4
Q
What does n stand for in the compound interest formula
A
Compounding period per year
5
Q
How do we put the interest rate r into the simple and compound interest formula
A
In decimal
