Flashcards
Compound Interest and Deprecation
Cards in this deck (2)
- 1Compound Interest Total = Principle * (1 + Interest as a decimal)^yearsDeprecation
Total = Principle * ((100-%)/100) - 2Find N (years) Trial and error using compound interest until you find a matching answer e.g. Henry invests £4500 at 5%. at the end of n years he has £5469.78. Find n 4500 * 1.04^4 = 5469.78, n = 4Multiple Interests
Viv invests £2,000 in a bank. Interest rate is 4% for the first year, 1% for the second year.
How to complete:
2000 * 1.04 * 1.01 = £2100.80
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- Flashcards on Compound Interest and Deprecation, created by Am aa on 22/10/2018.
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- Am aa
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