1. Section 1

1.21. Lesson 2 Summary

Mathematics 20-3 Module 2

Section 1: Simple and Compound Interest

 

Lesson 2 Summary

 

In this photo, stacks of coins are lined up in front of a golden money sign.

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In this lesson you examined compound interest on investments. To solve compound interest problems, you discovered that you had to know the annual interest rate, the number of compounding periods per year, the principal, and the investment term in years.

 

Compound interest is a much more powerful tool in making your money grow than simple interest because of the multiple compounding periods and reinvestment of the interest earned. Will you harness the power of compound interest?