As part of our Economics curriculum, The Teacher Lab has created this set of simple and compound interest mathematics problems. This set of word problems will complement the topics of banking and finance. What’s included (24 questions altogether!) 10 Simple Interest Problems 4 questions to ...
The basic compound interest formula is shown below: Current Balance = Present Amount * (1 + interest rate)^n n= Number of periods Consider an investment of $1,000 for 5 years with an interest rate of 5% compounded monthly. The monthly compound interest will be: The daily compound interest...
Because compound interest includes interest accumulated in previous periods, it grows at an ever-accelerating rate. In the example above, though the total interest payable over the loan's three years is $1,576.25, the interest amount is not the sameas it would be with simple interest. The in...
Practice the questions given in the worksheet on difference of compound interest and simple interest.Compound interest for 2 years - simple interest for two years P{(1 + )2 - 1} - e==P*r/(100)*r/(100) =100= Simple interest for 1 year on "Simple interest for 1 year".1. Find th...