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Maths in Practical Situation II > Compound Interest > Flashcards

Flashcards in Compound Interest Deck (9):
1

How is compound interest different from simple interest?

Compound interest is the interest earn not only on the principal, but also on all the previous interest earn. 

2

What is the formula for calculating total amount using compound interest

P = Principal

r = compound interest per year

n = number of years

3

To calculate the compound interest, what must we do?

We subtract the Principal from the Total amount.

4

Calculate the Total amount from

Principal = $20000

Compound interest rate = 2%

No of years = 3

5

Calculate the Compound interest from

Principal = $20000

Compound interest rate = 2%

No of years = 3

Compound interest = $21224.16 - $20000

= $1224.16

6

Calculate the Total amount from

Principal = $25000

Compound interest rate = 2.5%

No of years = 4

7

Calculate the Compound interest from

Principal = $25000

Compound interest rate = 2.5%

No of years = 4

Compound interest = $27595.32 - $25000

= $2595.32

8

Calculate the Total amount from

Principal = $30000

Compound interest rate = 1.5%

No of years = 10

9

Calculate the Compound interest from

Principal = $30000

Compound interest rate = 1.5%

No of years = 10

Compound interest = $34816.22 - $30000

= $4816.22