balance, invest, principal, rate
TEKS 8(1)(A), 8(12)(C), 8(12)(D)
Suppose you make regular monthly deposits to an account that earns compound interest. Each month your balance increases by the amount of interest you earned the previous month, plus the amount you deposited.
Example Calculating Balances for Accounts With Compound Interest and Regular Deposits
You deposit $80 in a savings account at the start of each month. The account earns 3.6% annual interest compounded monthly. Make a table to find the balance after four months. Round each amount to the nearest cent.