i have no idea wat compound growth is and I need to know for my math project. plz help me
2007-01-04 16:09:41 · 2 answers · asked by george h 2 in Education & Reference ➔ Homework Help
Compound growth has to do with finance -- and refers to the fact that in period (N+1) you not only get interest on the money you had in the previous period -- but get interest on the interest you earned.
For example, if you start with $100 and invest at 6%, you will have $106 at the end of year one. You can then reinvest the whole thing at 6% and get $106+6% on 106.
The general formula is:
FV = V * (1+R)^N
where FV is Future Value
V is starting value
R is the one period interest rate
N is the number of periods.
2007-01-04 16:15:21 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
a compound growth is 2 or more, mixed, combined, collective.
2007-01-04 16:17:05 · answer #2 · answered by ruth4526 7 · 0⤊ 0⤋