You can review the compound interest formulas or watch the compound interest videos to help you determine what you need to calculate the answers to the various compound interest word problems. Another option to calculators and the old fashion pencil/paper for calculating compound interest problems is to use a spreadsheet which has the PMT function built in.

Understanding how compound interest is calculated is important to determine payments for loans or to determine the future values of investments. These worksheets provide various terms, interest rates and principal amounts to help you practice applying the compound interest formulas. Prior to working with compound interest word problems, one should be comfortable working with decimals, percents, simple interest and the vocabulary/terms associated with interest.