# Calculate compound interest

- Author:
- Mathguru, Walch Education

- Topic:
- Planes

An investment of $500 is compounded monthly at a rate of 3%. What is the equation that models this situation? Graph the equation.

- Read the problem statement and then reread the problem, determining the known quantities.
- Substitute the known quantities into the general form of the compound interest formula,
, for which is the initial value, is the interest rate, is the number of times the investment is compounded in a year, and is the number of years the investment is left in the account to grow. - Graph the equation.