Compound Interest: Refers to compounding interest earned not only on the original value, but on the accumulated value of the account. (APR) Annual Percentage Rate of an account is the yearly interest rate earned by an investment account. Compound Interest Formula A(t) = account value P = principal t = time in years n= number of compounding periods r = annual interest rate (decimal form) A(t) = P(1 +5)** Example 5: If we invest $3,000 in an investment account paying 3% interest compounded quarterly, how much will the account be worth in 10 years?

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Compound Interest: Refers to compounding interest earned not only on the original
value, but on the accumulated value of the account.
(APR) Annual Percentage Rate of an account is the yearly interest rate earned by an
investment account.
Compound Interest Formula
A(t) = account value
P = principal
t = time in years
n= number of compounding periods
r = annual interest rate (decimal form)
A(t) = P(1 +5)**
Example 5: If we invest $3,000 in an investment account paying 3% interest
compounded quarterly, how much will the account be worth in 10 years?
Transcribed Image Text:Compound Interest: Refers to compounding interest earned not only on the original value, but on the accumulated value of the account. (APR) Annual Percentage Rate of an account is the yearly interest rate earned by an investment account. Compound Interest Formula A(t) = account value P = principal t = time in years n= number of compounding periods r = annual interest rate (decimal form) A(t) = P(1 +5)** Example 5: If we invest $3,000 in an investment account paying 3% interest compounded quarterly, how much will the account be worth in 10 years?
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