Compound Interest

Financial Math

Compound Interest

• Find the amount of an investment if $40,000 is invested at 6.5% compounded monthly for five years.

Compound Interestnt

nr

pA

1

• p = principal• r = nominal rate per year• n = compounded times per year• t = time in years• A = Amount

Compound Interest

• Find the amount of an investment if $40,000 is invested at 6.5% compounded monthly for five years.

• p (principal) = 40,000• r (rate per year) = 6.5%• n (compounded times per year) = 12• t (time in years) = 5

Compound Interest Calculator

For an online calculator for compound interest and continuously compound interest, see:

matrixlab-examples.com/calculate-compound-interest.html

Compound Interest Calculator