I'm learning about compound and simple interest and I'm really confused about formulas and stuff.... How do I find the compound interest step by step?
+2592 Simple is like putting $1000 dollars in a bank and getting .05% for the time it was left in there. So you put it in, and get $1050 when you pull it out
Compound is like putting $1000 dollars in the bank and getting .05% everytime a certain amount of time passes.So you put it in and after a year, there is $1050. Then you get another .05% of that $1050. So instead of just getting .05% of the $1000, you also get .05% on the $50. So after 2 years, you have $1102.50. And it builds off of that. So you get .05% on the full $1102.5, not just the $1000
+2592 Simple is like putting $1000 dollars in a bank and getting .05% for the time it was left in there. So you put it in, and get $1050 when you pull it out
Compound is like putting $1000 dollars in the bank and getting .05% everytime a certain amount of time passes.So you put it in and after a year, there is $1050. Then you get another .05% of that $1050. So instead of just getting .05% of the $1000, you also get .05% on the $50. So after 2 years, you have $1102.50. And it builds off of that. So you get .05% on the full $1102.5, not just the $1000
