Summary Compound Interest Can

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COMPOUND INTEREST CALCULATIONS Suppose that $1,000 is ...
COMPOUND INTEREST CALCULATIONS 3 gs2012 The formula used in reverse can be described as the present value.If the interest rate is r, then the value today of Pt at time t from now is given by P0 = Pt e - rt. We generally use continuous compounding because
Introduction to Interest - Maths Resources
In this case the "Interest" is $100, and the "Interest Rate" is 10% (but people often say "10% Interest" without saying "Rate") Of course, Alex will have to pay back the original $1,000 after one year, so this is what happens:

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