Periods per Year × Number of Years 4 quarters per year × 2 years = 8 periodsĮxample 1 Answer: Step 2 Find the interest rate per period. How much interest did you earn in 2 years? (Note: Use the Compound table on page 797 of your textbook to solve this problem.)Įxample 1 Answer: Step 1 Find the total interest periods.
211 In your own words, how do you read a chart in order to find the information you need?Įxample 1 State Bank pays 6 percent interest compounded quarterly on regular savings accounts. compound interest using tables Section Objectiveįormula 1 Amount = Original Principal ×Amount of $1.00įormula 2 Compound Interest = Amount – Original Principal.
