Logarithms 13 - Compound Interest
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Lesson Description:
Solve word problems using the compound interest formula and the formula where interest is compounded continuously. These are not using logs, they are using exponents. .
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Questions answered by this video:
- What is compound interest and the compound interest formula?
- How do you solve word problems using the compound interest formula?
- How do you find the amount of money in an account if $3000 is deposited at 8% interest rate for 5 years if interest is compounded quarterly or continuously?
- How do you find the amount of money in an account if $6000 is deposited at 6% interest rate for 7 years if interest is compounded twice a year or continuously?
- What do the letters or variables mean in A = P(1 + r/n)^nt?
- What do the letters or variables mean in A = Pe^rt?
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Staff Review
The compound interest formula, A = P(1 + r/n)^nt, is explained with all variables defined. Then, the interest formula where interest is compounded continuously, A = Pe^rt, is explained. Both formulas are then used to solve compound interest problems. All steps and work involved is explained and shown. This is a must-watch for anyone learning about compound interest.
