Compound interest is interest earned or paid on both the initial investment and previously earned interest. It is an application of exponential growth.
Compound Interest formula
A=P(1+
P=principal or starting amount 14,000
n=number of times interest is compounded (if monthly, n=12)
r=rate convert % to decimal divide by 100 or move decimal.
t=time 10 years
Maria's parents invested $14,000 at 6% per year compounded monthly. How much money will
there be in the account after 10 years?
Use a calculator to complete this problem after finding the rate and time
A=14,000(1+rate)12 x time
12