6th Grade Math Textbook, Fundamentals

Compound Interest Table

Number of

Periods 1.5% 2% 2.5% 3% 3.5% 4%

1 1.0150 1.0200 1.0250 1.0300 1.0350 1.0400

2 1.0302 1.0404 1.0506 1.0609 1.0712 1.0816

3 1.0457 1.0612 1.0769 1.0927 1.1087 1.1248

4 1.0614 1.0824 1.1038 1.1255 1.1475 1.1699

5 1.0773 1.1041 1.1314 1.1593 1.1877 1.2167

6 1.0934 1.1262 1.1597 1.1941 1.2293 1.2653

7 1.1098 1.1487 1.1887 1.2299 1.2723 1.3159

8 1.1265 1.1717 1.2184 1.2668 1.3168 1.3686

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7-14

To find the balance

in the account:

Find the interest rate per period.

Number of interest periods: 4 1 year has 4 quarters or periods.

Annual rate of interest: 6%

Quarterly rate of interest: 6%  4 1.5%

Find the factor.

Look across the 4th period row and down

the 1.5% interest rate column to find the factor.

Multiply the deposit by the factor to find the balance.

1.0614 • $12,000 $12,736.80

Subtract the principal from the balance to find how much

interest is earned.

$12,736.80 – $12,000 $736.80

So Ms. Johnson will earn $736.80 interest, leading to a balance

of $12,736.80 at the end of the year.

Divide the annual interest rate by 4 to

find the interest rate per period.

Compound Interest

Objective To compute compound interest using tables

Ms. Johnson deposits $12,000 in a savings bank account
that pays interest quarterly. The annual interest rate paid
by the bank is 6%. How much money will she have in the
bank at the end of 1 year?

To find how much money Ms. Johnson will have in the

bank at the end of 1 year, compute compound interest.

is the interest paid on the principal

and on the interest accumulated to date. The

of an interest-bearing account is the sum of the principal

plus the interest earned.

You can use a compound

interest table to compute

compound interest and find

the balance in an account.

The compound interest

table at the right shows

what factor the deposit

will be multiplied by to

find the balance.

balance

Compound interest

factors

interest rate per period