1. Compound Interest

2. Sam has $5000 to invest. She has found a place
where she can earn 5%, compounded annually.
How much is her investment worth after 5
years?

4. n*t
)
r
(
Compound Interest formula: A = P 1 + n
­ A is the amount you have at the end of your
investment
­ P is the amount you invest
­ r is the rate as a decimal
­ t is the time in years
­ n is the number of times interest is compounded
in a year

5. Byron has borrowed $10000 from Erick. Erick is
charging him an interest rate of 3.5%,
compounded annually. If Byron pays Erick back
after 2 months, how much will he pay?

6. Exercise 43
Questions 1 ­ 5
7 ­ 11