Terminology (Leaving Cert Mathematics): Flashcards

Original principal amount only

Remains constant

$SI = P \cdot r \cdot t$

Principal amount (initial investment)

Annual interest rate

Time (in years)

Principal and accumulated interest

Compound grows faster

$A = P \cdot (1+r)^t$

Total amount after $t$ years

Annual cost of borrowing or return on investment

Additional fees or costs

Annual interest earned with compounding reflected