You are here:

Word Problems/Compound Interest Table


Compound Interest Table
Compound Interest Tabl  

I have attached an image with this question for you to see.  I hope that you can see the interest table attachment.

At the bottom of the table, there is an example of $500.00 at 4% for 5 years (periods).  The calculation as shown is 500.00 X $1.216653.

How did the dollar sign cancel from the amount of $500.00?

Is it actually $500.00/$1.00 X $1.216653 or something else?

I thank you for your reply.

ANSWER: It should actually be written as, "$500.00 X 1.216653" since the 500 is the dollars and
the 1.216653 is the interest rate.

---------- FOLLOW-UP ----------

QUESTION: Thanks for the reply!

No, I disagree.  $1.216653 is the dollar amount $1.00 at 4% for 5 years earns.  So the calculation is something like:

$500.00/$1.00 X $1.216653 in which one of the dollar signs cancels
$500.00 X $1.216653/$1.00, in which one of the dollar signs cancels.

The number 1.216653 is the interest multiplier, not a dollar value.
If you're considering this as the dollar amount to be used on $1,
then putting  $1.216653/$1.00 is OK, but the number 1.216653 is usually taken as just the multiplier.

What you have done most people just assume without even thinking about it.

Either way, the same result is gotten, and that is $608.33.
In other words $500 with $108.33 in interest added on.

Word Problems

All Answers

Answers by Expert:

Ask Experts


Scott A Wilson


I have answered every question that was a story problems that had any relation to math for which an answer existed. I have ever answered some questions which had a vague relation to math, but still related.


My experience is from when I started doing story problems in grade school. I have been assisting, helping, and bringing smiles to many others ever since. Are you the next one?

In over 850 questions answered to other users. Maybe you're the next one ...

I received a BA in Mathematical Sciences from OSU and a MS in Mathematics from OSU as well.

Awards and Honors
I earned Both my BS degree and MS degree with honors for having such a high grade point average.

Past/Present Clients
I have answered hundreds and hundreds of students at OSU in the 80's and over 8,500 questions right here, but only a little over 850 of them have been word problems.

©2016 All rights reserved.