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## GED Math Chapter 8: Powers and Exponents Lesson 5

OK, welcome to lesson 5 on compound interest. I know you will love this lesson because compound interest is one of the main formulas for investing money. As with any formula you want to focus on what the different variables of the formula represent. Of course you will have to use your knowledge of powers and exponents as well.

Things to focus on in this lesson:

• the difference between compound interest and simple interest

• what each variable represents in the formula

• how to solve basic compound interest problems

#### Chapter 8 Lesson 5

Compound Interest

##### Math has a lot of practical value- by understanding compound interest you can verify if your loan payments are correct.

### Good work! you finished lesson 5 only one more lesson to go in this chapter. Here are some things you should be able to do:

- Work with powers and exponents
- Solve problems using scientific notation
- Use the compound interest formula

All right let’s finish up the last lesson in the chapter.