Compound interest and non-annual periods
Liam starts with $2,660 in a term deposit. The nominal annual rate is 3% p.a., compounded annually, for 3 years
This fictional model has a fixed nominal annual rate and no deposits, withdrawals, repayments or fees after the starting amount. Interest stays in the balance. Keep full calculator precision between periods. Round requested money answers to the nearest cent; give rates and period counts exactly. Displayed table balances are rounded summaries, not new starting values
Use P for the starting amount in dollars, A for the final amount, r for the percentage number per period, and n for the number of periods