Math 1 · Unit 8 · Lesson 3 · part 1 of 4
The Words We Use
The vocabulary for this lesson, in one place.
Words we use
| Word | Plain English | What you do |
|---|---|---|
| Compounding period | How often interest is added to the account. | Find n, the number of periods in a year. |
| Compounded quarterly, monthly, daily | 4, 12, or 365 times a year. | n = 4, 12, 365. Annually is n = 1. |
| Rate per period | r over n, written stacked: the piece of the yearly rate paid each time. | Divide the yearly rate by n first. |
| Number of periods | n times t: how many times interest is added in all. | It is the exponent. |
| Growth factor for one period | 1 plus r over n: what the balance is multiplied by each period. | Read the whole parentheses as one quantity. |