Simple interest formula and compound interest formula

What this note covers

1. The Two Formulas and What Each Symbol Means
2. Finding Interest Earned and Total Amount
3. Adjusting for Non-Annual Compounding Periods
4. Rearranging to Find the Principal, Rate, or Term
5. Comparing Simple and Compound Interest Scenarios
6. Reading Problems Carefully: Common Exam Traps
7. Effective Annual Rate and Why Compounding Frequency Matters

7 sections · 14 key terms & formulas · 6 common mistakes