Paul Meyer's Lesson Plan For HMA194

Lecture 8

Compound Interest Formula

Objectives

We are going to calculate the following The present value P given the future value S , interest rate i and duration n The interest rate i given S, P and n The length or duration of an investment given S, P and i Perform the following funtions on your calculator Natural logarithm function ln Exponential function e Differentiate between Compound interest and Simple interest

Preknowledge

Use your calculator to perform Power calculations Using brackets for calculations Use fraction key on your calculator How to substitute values into formulae How to transpose formulae

Activity

Given transpose the equation to make P the subject