Just about everything Prof Grinnell wrote on the board.
University of Toronto Scarborough
092210 Mathematics of Finance 5.1 Compound Interest Formula n a kt S = P(1 + r) = P(1 + )k P = principal r = periodic interest rate n = # of compounding periods S = compound amount a = APR (annual percentage rate) t = time (# of years) r = k n = t NB: Interest is always paid right @ the very end of each compounding period. Ex Invest $10k @ 3.05% APR compounding monthly for 5 years. a) S = compounding amount a kt = P(1 + k = 10,000(1 + 0.030 ) (12)(5) 12 11,645.17 b) Period rate = r = a