Modelling Compound Interest Investments With Additions to the Principal (VCE SSCE General Mathematics): Flashcards

Compound interest investment with regular additions

$R = 1 + \frac{r}{100 \times p}$

Growth multiplier for geometric/percentage growth

Fixed amount added or subtracted each period

$V_0 = \text{principal}, V_{n+1} = RV_n + D$

$p = 12$

$p = 4$

Annual interest rate (as a percentage)

Number of compounding periods per year

Compound interest earned on them for longer time