Example 3

Money deposited in a bank account earns interest on the initial amount deposited as well as any interest earned as time passes. This compound interest can be described by the expression [math]P(1 + r)^n[/math], where [math]P[/math] represents the initial amount deposited, [math]r[/math] represents the interest rate, and [math]n[/math] represents the number of years that pass. How does a change in each variable affect the value of the expression?

 

Walch Education

 
Resource Type
Activity
Tags
expression  interest  rate  variable 
Target Group (Age)
14 – 18
Language
English
 
 
 
© 2018 International GeoGebra Institute