Algebra Word Problem Solver

Solving Compound Interest Word Problems Step-by-Step

There are two kinds of Compound Interest problems.
The Algebra Word Problem Solver solves both kinds of Compound Interest word problems.

• The first is where interest is compounded periodically. For this case, the formula is:

              nt
  A = P(1+r/n)  

  • A is the resulting amount after the Principle, P receives interest at the rate r for the time period t.
  • n is the number of compound periods per year.
  • The table below gives n for commonly used compound periods.

    Determining n for Common Compound Periods
    Compound Period	n
    Annually	1
    Semiannually	2
    Quarterly	4
    Monthly	12
    Weely	52
    Daily	360

    
    
• The second kind of compound interest problems is where interest is compounded continuously. For this case, the formula is:

      rt
  A=Pe  

  • A is the resulting amount after the Principle, P receives interest at the rate r for the time period t.

See some examples of Compound Interest word problems solved by the Algebra Word Problem Solver.

• Find Compound Interest Amount
• Find Compound Interest Time to Double
• Find Compound Interest Rate
• Find Compound Interest Present Value
• Find Compound Interest Future Value
• Continuously Compounded Interest