Compound Interest (Junior Cert Mathematics): Flashcards
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14 cards from this deck
Compound interest definition
Compound interest definition
Interest added to new total; earns interest on previous interest
Principal definition
Principal definition
Starting amount of money invested or borrowed
Interest definition
Interest definition
Extra money added/owed based on principal
Rate definition (compound interest)
Rate definition (compound interest)
Percentage at which interest is added (usually per year)
Final value/amount definition
Final value/amount definition
Total money after all interest added at end of period
Compound interest formula
Compound interest formula
in compound interest formula
in compound interest formula
Final amount (total at end)
in compound interest formula
in compound interest formula
Principal (starting amount)
in compound interest formula
in compound interest formula
Interest rate as a decimal
in compound interest formula
in compound interest formula
Time in years
Converting 5% to decimal
Converting 5% to decimal
Divide by 100: 5% = 0.05
Why add 1 to rate in compound interest formula
Why add 1 to rate in compound interest formula
Calculates principal + interest together
Why raise to power of in compound interest
Why raise to power of in compound interest
Calculates compound growth over multiple years
Location of compound interest formula
Location of compound interest formula
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