Year 13 maths · A.2 · Exponential Models
Compound interest
Amount = P × (1 + r)ⁿ.
See worked examples
$1,500 is invested at 6% a year, compounded yearly. What is it worth after 4 years? Round to the nearest cent at the end.
Answer: $1893.72
$600 is invested at 5% a year, compounded yearly. What is it worth after 3 years? Round to the nearest cent at the end.
Answer: $694.58
$700 is invested at 2% a year, compounded yearly. What is it worth after 5 years? Round to the nearest cent at the end.
Answer: $772.86
Tip: Amount = P × (1 + r)ⁿ.
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