Today was a short block class so we didn't do any mental math. Instead we started into Compound Interest. Compound Interest is a bit more complicated then Simple Interest, and if you are the one borrowing the money, it's not good! Unfortunatly the coursework drive wasn't working today so we didn't get to use some programs we normally would. Although these promgrams were not working Mr.Max showed us the difference between simple and coumpound interest.
As you can see compound interest is interest that is calculated many times (either re-borrowed or re-lent).
This picture shows how compund interest will add up to a lot more money very quickly.
This final picture shows the formula for compound interest. A is the amount of interest. P is the principal or amount invested. R is the interest rate. T is the time it is invested for, and N is the number of interest compoundings per year.
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