Summary (Grade 11 NSC Matric Mathematics): Flashcards

Simple: $(1 ± in)$ linear; Compound: $(1 ± i)^n$ exponential

$A = P(1 + in)$

$A = P(1 + i)^n$

$A = P(1 - in)$

$A = P(1 - i)^n$

Only on original principal amount

Principal + previously earned interest

Stated annual rate without compounding frequency effect

Actual rate earned with frequent compounding

Effective always higher when compounding > once/year