Finance
Free lessons and practice worksheets for finance — worked examples, common mistakes, and step-by-step solutions.
- 01Finance3 min read
Compound Interest
Compound interest occurs when interest earned on an initial investment or deposit begins earning interest itself, creating exponential growth rather than linear growth. The formula A = P(1 + r)^n calculates the final amount, where P represents principal, r the annual interest rate as a decimal, and n the number of years. This mathematical concept forms the foundation of long-term wealth building and appears in savings accounts, investment funds, and retirement planning.
- 02Finance3 min read
Consumer Math
Consumer math encompasses the practical mathematical skills needed for everyday financial decisions, from calculating sales tax and discounts to comparing unit prices and understanding loan interest. These calculations involve percentages, proportions, and basic arithmetic applied to real-world purchasing scenarios. The subject covers essential skills like determining final prices after markups or discounts, converting between pre-tax and post-tax amounts, and evaluating the true cost of credit.
- 03Finance3 min read
Personal Finance
Personal finance involves mathematical calculations that help individuals manage money effectively through budgeting, saving, and investing. The core equation Budget = Income − Expenses determines how much money remains available for savings each month. These mathematical principles apply whether someone earns $35,000 annually or $600,000, with calculations scaling proportionally across different income levels.