Types of Compound Interest Compound Annually= Once per year
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Find the balance of an account holding $1000 for 2 years compounded semi-annually at 8% annual interest. Too much work!
Types of Compound Interest Compound Annually= Once per year Compound Semi-annually= 2 times per year Compound Quarterly= 4 times per year Compound Monthly= 12 times per year Compound Weekly= Once per week (52 times per year) Compound Bi-weekly= Once every 2 weeks (26 times per year)
Find the total interest earned and the balance of an account that started with $200 at 5% for 1 year compounded quarterly.
Compound Interest Formula Long WayQuicker Way
An investment of $4000 compounds quarterly for 3 years at 6% annual interest.
Compound Annually Compound Semi-annually Compound Quarterly r = 0.08 n = 3n = 6 n = 12.
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