Simple and Compound Interest (HSC SSCE Mathematics Advanced): Flashcards

Interest calculated only on original principal amount

$I = PRn$

Interest on principal plus accumulated interest

$A_n = P(1 + R)^n$

$A_n = P(1 - R)^n$

Per annum (per year)

Linear growth / arithmetic sequence

Exponential growth / geometric sequence

Divide by 100

Rate and time period must use same units