Chapter 4 Class Handout Simple Interest: A = P(1+rt) P: the principal, the amount invested A: the new balance t: the time r: the rate, (in decimal form) Ex1: If $1000 is invested now with simple interest of 8% per year. Find the new amount after two years. P = $1000, t = 2 years, r = 0.08. A = 1000(1+0.08(2)) = 1000(1.16) = 1160 Compound Interest: P: the principal, amount invested A: the new balance t: the time r: the rate, (in decimal form) n: the num...
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Chapter 4 Class Handout Simple Interest: A = P(1+rt) P: the principal, the amount invested A: the new balance t: the time r: the rate, (in decimal form) Ex1: If $1000 is invested now with simple interest of 8% per year. Find the new amount after two years. P = $1000, t = 2 years, r = 0.08. A = 1000(1+0.08(2)) = 1000(1.16) = 1160 Compound Interest: P: the principal, amount invested A: the new balance t: the time r: the rate, (in decimal form) n: the num...
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