How to remember

Annual interest formula remember

The formula is:

`A=P(1+r/n)^(nt)`

To remember this think

The annual that was most interesting in my childhood:

Annual of most interest had a front cover that looked like a face. 

Draw this interesting face and you won't forget this formula

Note:

Rin nearly spells ring, which many people have in their nose or eyebrows.

Nut is a reference to your head where ‘nt’ sits.

P is eating Pea soup.

Now turn this sideways

Do a quick sketch – Then rotate it

Formula symbol meaning

`A=P(1+r/n)^(nt)`

How do you know what each symbol means?

From our picture:

 1.   Annual book that was most interesting.          

 A = Annual interest formula 

But the A also stands for ALL as in all the total interest.

 2.  Pea green soup (Principal).

      And we always start with the soup don’t we? (Starting amount)

  P = Principal (starting amount)

3.  r can only be rate

     r = rate of interest

    (What else could it be?)

4.  t = time (in years)

     (What else could it be?)

5.  n = If n stands for night time, there are 365 nights in a year. So if the interest compounded every night n would be 365.

     n = number of compounds in a year.