# MA129 Lecture Notes - Lecture 7: Formula 5000, Interest, Compound Interest

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15 Feb 2018

School

Department

Course

Professor

Lecture 7 - Interest and Logs

Simple Interest

Interest earned formula:

I = Prt

Amount earned formula:

A = P + I

Compounding interest formula:

A = π ( 1 + π/π )ππ

Ex.

You have $5000 at 4% per annum, how much will you have after 3 years?

I = Prt

I = (5000)(0.04)(3)

= 600

*To find how much we have total after 3 years we need to add the interest plus principle, which

is the amount earned formula

= 5000 + 600

= $5600

Ex.

$25,000 is borrowed for 5 years at 6% compound interest. Compounded quarterly, and again

semi annually. Find the interest earned on each.