How much have you saved and how much more do you need?

The interest earned on a savings deposit is a function of four variables

The amount of money held on deposit $($PV$)$

The method to be used in calculating interest$-$for example, simple versus compound interest

The interest rate applied to the amount on deposit $($i$)$

The frequency with which the account's interest is earned$-$for example, annually, semiannually, quarterly, monthly, or daily

Another important variable is the amount of time during which the funds are held in the savings account $($n$).$

These variables and their interaction determine the account's balance at a particular point in time.

How do these variables work together to determine an account's balance?

Which of the following formulas would you choose to calculate the future balance on an account that earns compound interest?

Now let's use these fundamental concepts to answer questions involving several different situations.

Interest Factors

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