Prealgebra 7.4b - Compound Interest

[victorian721]

thank you.......this helps a lot.........but how do you know wheter they're asking you for simple interest or compound interest........

[derekowens]

@victorian721

The problem will typically say something like "compounded annually for three years". In other words, it is (or should) be stated in the problem that you should compound the interest.