# 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.