8/8/2019 Exponential Functions & Compound Interest

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EXPONENTIAL FUNCTIONS & COMPOUND INTEREST

Compound Interest:

time

Growth/Decay Rate:

Growth b = (1+r)

Decay b = (1-r)

*r is written as a decimal*

Starting amount

Accumulated

AmountInitial Principal

(Amount Invested)# of times interest

is compounded

per year

# of years

Annual interest

rate (written as

a decimal

# of times interest

is compounded

per year