Compound interest: finding FV, PV, n and I with the financial solver

What this note covers

1. The compound interest model and where it sits in Topic 4
2. The five variables and the words the exam uses for them
3. Setting up the solver correctly, including signs
4. Finding the future value and the interest earned
5. Finding the present value: how much to invest now
6. Finding the number of periods and the interest rate
7. Compounding frequency, limitations and what the model assumes
8. How this is examined in the SACE Stage 2 paper

8 sections · 12 key terms & formulas · 6 common mistakes