Episode 6 — Finance Growth and Decay

Compound Interest Question 2

Learners will be able to:

• Calculate the value of A using the compound interest formula. • Identify the variable that needs to be solved for in a compound interest problem where all variables except I are given. • Apply the formula A = P(1 + I)^N to solve for I when N, P, and A are known. • Solve for I by taking the Nth root of both sides of the equation (A/P) = (1 + I)^N. • Interpret the result of the calculation as a percentage value.