Compound interest FV = PV(1 + i)^n, compounding periods, effective annual rate and inflation

What this note covers

1. Build the compound-interest model
2. Match compounding frequency and elapsed time
3. Convert a nominal rate to an effective annual rate
4. Solve for time or an unknown rate
5. Model inflation as compound growth
6. Audit and communicate a compound calculation

6 sections · 10 key terms & formulas · 6 common mistakes