compound interest

[robinphilip01]

Hi Tommy,
For compound interest calculating ,is it the right way to calculate the value of numbers like (1.035)ᶺ12 by repeated calculator entry ..?
Is there any easy way ..?
Robin

[tommywallach]

Hey Robin,

I would only worry about it in the context of actual questions, if that makes sense. People often stress about their idea of how a concept might be tested, because they don't understand that, in reality, the GRE tests everything on a very friendly level. Compound interest does often involve raising something to a power, but usually it's a low number, so easy to multiply out on the calculator (i.e. compounded semi-annually or quarterly, rather than monthly, as expressed in your example).

-t

[robinphilip01]

Thankyou..

[tommywallach]

No problem!