PPT-What is Compound Interest?

Growing Money with Compound Interest NoFrills Money Skills Video Series Episode 1 httpswwwyoutubecomwatchvaqu8pALMtOs Interest Terms to Know Interest rate the price paid for using someone elses money expressed as a percentage of the amount borrowed . Chapter 10. Money. Percentage.  . Tipping. 15% is usually considered a normal tip. How much would you have to tip for a bill:. $6.40. $0.96. $154.25. $23.14. $99.87. $14.98. Simple Interest. APR: Annual Percentage Rate. 1. Insured . Accounts. Consumer Math 2012-2013. 2. Overview. Differences between checking and savings accounts. APR . vs. . APY. CDs. MMAs. Simple . Interest. Compound . Interest. 3. Differences. Interest Earned. Finances Part I. Sales Tax. Optional for individual states.. How to compute sales tax:. (Total cost of item) x (percent of sales tax) = amount of sales tax. Cost of item + amount of sales tax = register price. Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.. McGraw-Hill/Irwin. Compare simple interest with compound interest.. Calculate the compound amount and interest manually, using algebraic formulas and with a financial calculator.. Interest. You EARN interest when you put $ into a savings account.. You PAY interest when you borrow money...bank, loan, credit card. Interest. - amount earned or paid for the use of money.. P. rincipal. Exponential Growth. Exponential growth. occurs when an quantity increases by the same rate . r. in each period . t. . When this happens, the value of the quantity at any given time can be calculated as a function of the rate and the original amount. . Interest. : . fee. paid by a borrower of . assets. (bank) to the owner as a form of compensation for the use of the assets (money). . It . is most commonly the price paid for the use of borrowed money, or money earned by . EGN . 3615. ENGINEERING ECONOMICS . WITH SOCIAL AND GLOBAL IMPLICATIONS. 1. Chapter Contents. Uniform Series Compound Interest Formulas. Uniform Series Compound Amount Factor. Uniform Series Sinking Fund Factor. The Solution of a Difference Equation for a Compound Interest Account Basic Compound Interest Formula Recall that the new balance of an account that earns compound interest can be found by using the formula Compound Interest S.Y.Tan F = 12000 (1+ (0.1)(1)) = 13200 P =12000 ; r = 10% = 0.1 ; t = 1 year ; F =? ; I = ? The yield of simple interest is constant all throughout the investment or loan term. Making Money is the Bottom Line!. http://fairway.ecn.purdue.edu. /~. step/class_material. What are we learning?. A large percentage of engineers in the work force today are in management positions.. Engineers are able to combine their knowledge of technology with business skills to improve their company by making important and educated business decisions.. Make it work for you, or be its slave. There’s no in between. A Few words from J. Reuben Clark . jr.. . Interest never sleeps nor sickens nor dies; it never goes to the hospital; it works on Sundays and holidays; it never takes a vacation; it never visits nor travels . . . it has no love, no sympathy; it is as hard and soulless as a granite cliff. Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands nor orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you.”. Advanced Financial Algebra. What is compound interest?. Remember desc. ription and examples. from Section 2-4.. Compound interest means that you are paid interest on your balance AND on previous interest you have earned.. Unit 9. Learning Objectives. 1. Calculate interest rates and the number of compounding periods. 2. Compute future (maturity) values of investments . 3. Compute present values of future sums of money.