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
expression  interest  rate  variable 
Target Group (Age)
14 – 18
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