Compound interest formula A= Department of （复利公式= 部门）.pdfVIP

Compound interest formula A= P = the principal (the initial amount) r=annual interest rate (expressed as a decimal) n=number of interest periods per year (see the table below for more information) t=number of years P is invested A=amount after t years If investment interest rate is compounded monthly, then n = 12 If investment interest rate is compounded quarterly, then n = 4 If investment interest rate is compounded semi-annually, then n = 2 If investment interest rate is compounded annually, then n = 1 Continuously compounded interest formula A= P = the principal (the initial amount) r=annual interest rate (expressed as a decimal) t=number of years P is invested A=amount after t years Law of growth(or decay) formula q=q(t)=q ert 0 (i.e q changes instantaneously at a rate proportional to its current value) Where : q =the value of q at time t=0 (that is, q0 is the initial amount) 0 If r0 then r is called the growth rate of q(the growth constant) If r0 then r is called the decay rate of q (the decay constant) Practice exercises 1. $1000 is invested at a rate of 11% per year compounded monthly. (a) Find the principal after 1 month (b) Find the principal after 1 year. 2. If a savings fund pays interest at a rate of 10% per year compounded semiannually, how much money invested now will amount to $4500 after 1 year? (Round the answer to the nearest cent.) 3. If P dollars is deposited in a savings account that pays interest at a rate of r % per year compounded continuously, find the balance after t years. (Round your answer to the nearest cent.) 4. The 1980 population of the United States was approximately 231 million, and the population has been growing continuously at a rate