Draw a flow chart to find compound interest
Understand the Problem
The question is asking for a flow chart that visually represents the steps to calculate compound interest. To solve this, we will outline the necessary steps involved in the calculation, which typically include identifying the principal amount, the rate of interest, the number of compounding periods, and the time duration.
Answer
Start with input values and calculate A = P(1 + R/(100*N))^(N*T); output Compound Interest as A - P.
To draw a flowchart for calculating compound interest, follow these steps: 1) Start with an oval labeled 'Start'. 2) Draw a parallelogram labeled 'Input Principal (P), Rate (R), Time (T), Number of Times Compounded (N)'. 3) Use a rectangle to perform the calculation: A = P(1 + R/(100N))^(NT). 4) Draw another parallelogram to display the output 'Compound Interest = A - P'. 5) End with an oval labeled 'End'.
Answer for screen readers
To draw a flowchart for calculating compound interest, follow these steps: 1) Start with an oval labeled 'Start'. 2) Draw a parallelogram labeled 'Input Principal (P), Rate (R), Time (T), Number of Times Compounded (N)'. 3) Use a rectangle to perform the calculation: A = P(1 + R/(100N))^(NT). 4) Draw another parallelogram to display the output 'Compound Interest = A - P'. 5) End with an oval labeled 'End'.
More Information
The compound interest formula considers principal amount, annual interest rate, time duration, and the number of times the interest is compounded per year to calculate the total amount accumulated over time.
Tips
A common mistake is misplacing the position of rate and time when substituting into the formula or forgetting to divide the rate by the number of compounding periods.
Sources
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