Compounding Interest - DOC by MaryJeanMenintigar

VIEWS: 355 PAGES: 1

More Info
									                        COMPOUNDING INTEREST

DEFINE:

Discretionary Income—

Principal—

Interest—

Compound Interest—

Annual Percentage Yield—


Compound the following:

Compound $50.00 annually at 5½% for 3 years.

                 Year   Beginning Balance Interest Earned Ending Balance


                  1           $50.00
                  2
                  3



Compound $50.00 quarterly at 5½% for 3 years.

             Year--Quarter Beginning Balance Interest Earned Ending Balance


                  1-1           $50.00
                  1-2
                  1-3
                  1-4
                  2-1
                  2-2
                  2-3
                  2-4
                  3-1
                  3-2
                  3-3
                  3-4

								
To top