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7.4 Compound interest - IB Math Studies

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7.4 Compound interest September 22, 2014 7.4 Compound interest Objectives: • Calculate value of investments with simple compound interest. • Determine future values of investments

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Page 1: 7.4 Compound interest - IB Math Studies

7.4 Compound interest September 22, 2014

7.4 Compound interest

Objectives: • Calculate value of investments with simple compound interest.• Determine future values of investments

Page 2: 7.4 Compound interest - IB Math Studies

7.4 Compound interest September 22, 2014

If interest is compounded semi-annually then k=2

If interest is compounded quarterly then k=4

If interest is compounded monthly then k=12

Page 3: 7.4 Compound interest - IB Math Studies

7.4 Compound interest September 22, 2014

Page 4: 7.4 Compound interest - IB Math Studies

7.4 Compound interest September 22, 2014

Page 5: 7.4 Compound interest - IB Math Studies

7.4 Compound interest September 22, 2014

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7.4 Compound interest September 22, 2014

Page 7: 7.4 Compound interest - IB Math Studies

7.4 Compound interest September 22, 2014

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7.4 Compound interest September 22, 2014

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