Comments on: A Visual Guide to Simple, Compound and Continuous Interest Rates http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/ Learn Right, Not Rote. Wed, 16 May 2012 12:30:32 +0000 hourly 1 http://wordpress.org/?v= By: Test Blog | An Intuitive Guide To Exponential Functions & e http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-79124 Test Blog | An Intuitive Guide To Exponential Functions & e Wed, 16 May 2012 11:16:08 +0000 http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-79124 [...] Examples make everything more fun. A quick note: We’re so used to formulas like 2^x and regular, compound interest that it’s easy to get confused (myself included). Read more about simple, compound and continuous growth. [...] [...] Examples make everything more fun. A quick note: We’re so used to formulas like 2^x and regular, compound interest that it’s easy to get confused (myself included). Read more about simple, compound and continuous growth. [...]

]]> By: StatBioPhysChem | An Intuitive Guide To Exponential Functions & e http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-78785 StatBioPhysChem | An Intuitive Guide To Exponential Functions & e Tue, 15 May 2012 10:50:38 +0000 http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-78785 [...] Examples make everything more fun. A quick note: We’re so used to formulas like 2^x and regular, compound interest that it’s easy to get confused (myself included). Read more about simple, compound and continuous growth. [...] [...] Examples make everything more fun. A quick note: We’re so used to formulas like 2^x and regular, compound interest that it’s easy to get confused (myself included). Read more about simple, compound and continuous growth. [...]

]]> By: An Intuitive Guide To Exponential Functions & e | BetterExplained http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-12423 An Intuitive Guide To Exponential Functions & e | BetterExplained Mon, 14 Nov 2011 08:50:14 +0000 http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-12423 [...] Examples make everything more fun. A quick note: We’re so used to formulas like 2^x and regular, compound interest that it’s easy to get confused (myself included). Read more about simple, compound and continuous growth. [...] [...] Examples make everything more fun. A quick note: We’re so used to formulas like 2^x and regular, compound interest that it’s easy to get confused (myself included). Read more about simple, compound and continuous growth. [...]

]]> By: Kalid http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-4775 Kalid Mon, 17 Oct 2011 16:25:19 +0000 http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-4775 @ken: Hi, the formula for compound interest is P * (1 + r)^n where P is your initial amount, r is your interest rate (10% = .10), and n is the number of years. The 1 is needed because your interest rate is a percentage increase from 1.0 (i.e, 1.0 + .10 = 1.1, which is a 10% increase over 1.0). You could write P * (T)^n where T is the "total" amount after 1 year (1.1). But, it's usually easier to see the interest rate separated out in each formula. @ken: Hi, the formula for compound interest is

P * (1 + r)^n

where P is your initial amount, r is your interest rate (10% = .10), and n is the number of years. The 1 is needed because your interest rate is a percentage increase from 1.0 (i.e, 1.0 + .10 = 1.1, which is a 10% increase over 1.0).

You could write

P * (T)^n

where T is the “total” amount after 1 year (1.1). But, it’s usually easier to see the interest rate separated out in each formula.

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