Compound interest is earned on capital when the interest is periodically added to the principal. If P denotes the principal, r the rate of interest percent per annum (per year), n the period in years and A the amount of P in n years,

Example Find the compound interest on $10,000 for 4 years at 5% per annum. What will be the simple interest in the above case ?

[next page]

Index

9.1 - Definition and Solving Techniques
9.2 - Use of Simultaneous Linear Equations

Chapter 1