Hazel and Lesley show you how to calculate compound interest. Compound interest is the interest paid on the amount accrued due to the previous interest payments. You deposit 400 in to a bank account paying 5 simple interest per year.
Compound and simple interest and depreciation 1.
Identify before after quantities. This is different from Simple Interest where Interest is only paid on the original amount How do you work with compound interest. Compound interest Compound interest means that each time interest is paid onto an amount saved or owed the added interest also receives interest from then on. How much interest would you have earned after 3 years.