©G Dear 2009 – Not to be sold/Free to use General Mathematics Preliminary Investing Money Compound Interest Tables Stage 6 - Year 11 Press Ctrl-A ©G Dear 2009 – Not to be sold/Free to use

Compound Interest Tables (1/2) We can use a table to calculate compound interest! We can use a formula! Compound Value Interest Factor Compounded Value CV = PV x CVIF Present Value Click in formula for meanings. Example Use the CVIF table to calculate the compounded value of $3000 invested at 7% p.a. for five years. CV = 3000 x 1.403 = $4209 Table Trigger

Compound Interest Tables (2/2) We can use a table to calculate present value! CV = PV x CVIF Example Use the CVIF table to calculate the present value of with a compounded value of $4209 invested at 4% p.a. for four years, calculated 6 monthly. 4209 = PV x 1.172 ÷1.172 ÷1.172 PV = $3591.30 This is the amount we would need to invest. Table Trigger