How can you tell if a math question is compound or simple interest?

Answer 1

If it is asking you to compute the interest, it has to say specifically what kind of interest it is. There isn't anyway to tell from the problem, unless it specifies it. In real life, your bank will tell you which they use, if you ask them.

Answer 2

The formula is F = P (a million + r/n) ^ (nt) the position F = very last quantity P = critical (commence quantity) r = cost as a decimal n = type of compoundings in line with 12 months t = type of years ^ skill to the capacity of so a million is F = 900 (a million + 0.05/4) ^ (6 • 4) and a couple of is F = 7000 (a million + 0.09/2) ^ (2 • 4) (assuming the values you gave are the starting up quantities)

Answer 3

P = P0( 1+r/n)^n, where
P0 is the current value,
r is the interest rate
n is the number of times the interest is compouded per year

So if your rate is 6% and it is compounded once per year we have P=P0 (1+ .06) = P0(1+ .06) which is simple interest.

If the the interest were compouned monthly, then
P = P0( 1 + r/12)^n

If the interest was compouded weekly, then
P=P0( 1+r/52} ^n

Answer 4

Usually the word "compounded" appears somewhere in the question if it is a compound interest problem...