3.3 Real World Compound Interest
Would you Rather ?
Penny a day.pdfComplete the following package to help discover and learn more about the POWER of "Compound Interest"
DiscoverCompoundInterest.pdf
In Class Demo / Explanation
In Class Demo / Explanation
Dec4_NeverTooLateDemo.mp4
CORRECTIONS !!! I messed up #3/4 explanations
CORRECTIONS !!! I messed up #3/4 explanations
Dec5_CORRECTIONS.mp4EXCEL Demo for Assignment ??
Dec6_Excel Demo.mp4FIXES from Demo to the left :(
Dec7 Excel FIXES.mp4Time permitting &/or as a "bonus activity" we will learn to create a spreadsheet tool ourselves for calculations, but for now, we will use tools that are already created and provided for free.
You can download apps to do the same thing, and they come with a variety of names such as, "compound interest calculator", "Finance Calculator", "TVM Solver" etc.
Here is a link to a website tool you can use to calculate compound interest. You could also download the excel spreadsheet, but can do right on the web page as well (link below)
Number 18 on the worksheet introduces the above tool.
Go to this website and scroll down to the Compund Interest Calculator section where you can enter values. Enter the numbers in image below and press calculate to get the values that match totals of first row (it will be a penny less due to rounding)
2. If it does not match, find your mistake(s)
Did you add the interest to previous balance each quarter AND add $150 ?
Correct Row 1
3. I made SEVERAL errors when I was calculating manually.
Change the years of growth to 2 and check your second row (note:add the two annual interest amounts in your table).......Correct your second row.
4. You do not have to check & correct the rest of the rows (although I recommend it), but put in 5 for the number of years and see how far off you might be.
