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052 4 4t note - PowerPoint PPT Presentation

Financial Models (NEW)

Financial Models (NEW). Section 5.7. Compound Interest Formula. If P represents the principal investment, r the annual interest rate (as a decimal), t the time in years, and n the frequency of compounding, then the future value is given by the formula: A = P( 1 + r/n) nt. Example.

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Compound Interest

Compound Interest. Section 5.2. Introduction. Re-investing your interest income from an investment makes your money grow faster over time! This is what compound interest does.

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052 4 4t note - PowerPoint PPT Presentation

Financial Models (NEW)

Compound Interest