More on Depreciation and Compounding Interest

As we continued our investigation into exponential growth and decay, we looked at how compounding annually compares to compounding on a semi-annual or quarterly basis. One must remember to cut the interest down (by half or a fourth, in these cases) and then increase the value of n before calculating the interest. This sounds confusing, but it really isn't. In most cases, you'll gain more interest by compounding over shorter periods of time. For instance, if given the chance to earn interest monthly rather than quarterly, take it! Of course, the opposite is true if you are paying interest on a purchase. In this case, take the longest compounding period offered.

Tonight's Homework: Complete problems 1-12 on the Compound Interest worksheets. Be sure to show the key sequence (process) you used to complete each problem. Remember to prepare for the quiz tomorrow over square root functions by reviewing the green and ivory square root worksheets in your notebook.