Compound Interest (Finite Number of Calculations) - Concept

Concept Concept (1)

One real world application of exponential equations is in compound interest. The formula for compound interest with a finite number of calculations is an exponential equation. We can solve for a parameter of this equation, and can use logarithms to access parameters in the exponent. Students may be asked to solve compound interest problems with interest compounded biannually, monthly, or daily.

Sample Sample Problems (7)

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Compound Interest (Finite Number of Calculations) - Problem 2

Invest $5000 at 5% interest compounded quarterly.

How long to double the investment?
Problem 2
How to use the finitely compounded interest formula to find doubling time.
Compound Interest (Finite Number of Calculations) - Problem 3
Problem 3
How to find the initial investment amount needed to get a fixed amount after a time of finite compounding.
Compound Interest (Finite Number of Calculations) - Problem 4
Problem 4
How to find finitely compounded interest rate for an investment to reach a known amount after time.
Compound Interest (Finite Number of Calculations) - Problem 5
Problem 5
How to calculate interest rate for an investment to triple in a certain amount of time.
Compound Interest (Finite Number of Calculations) - Problem 6
Problem 6
Determining how long it takes for an investment to double with a finite number of interest compoundings per year.
Compound Interest (Finite Number of Calculations) - Problem 7
Problem 7
How to solve investment problems using interest compounded a finite number of times per year.