### 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 Problems (7)

Need help with "Compound Interest (Finite Number of Calculations)" problems? Watch expert teachers solve similar problems to develop your skills.

You invested \$3000 in an account that earns 4% interest.

How much will you have after 4 years if interest is compounded
a) biannually
b) monthly
c) daily
###### Problem 1
How to use the finitely compounded interest formula to find amount of an investment.

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.
###### Problem 3
How to find the initial investment amount needed to get a fixed amount after a time of finite compounding.
###### Problem 4
How to find finitely compounded interest rate for an investment to reach a known amount after time.
###### Problem 5
How to calculate interest rate for an investment to triple in a certain amount of time.
###### Problem 6
Determining how long it takes for an investment to double with a finite number of interest compoundings per year.
###### Problem 7
How to solve investment problems using interest compounded a finite number of times per year.