Making Money With Algebra

Many individuals make money by collecting interest on money which they loan or invest. Banks and other financial institutions also make a profit by charging interest on loans. If, like millions of people, you were working in one of these financial institutions, there would be several mathematics of finance formulas which determine the interest that is charged.

You are probably familiar with some of them. (For discussion of these formulas, see the Pull-Out Sections in past issues of Consortium - Numbers 30, 29, 27, 20 and 16.) One of these formulas is the Compound Interest Formula.