# Example 2

- Author:
- Walch Education

- Topic:
- Algebra

Money deposited in a bank account earns interest on the initial amount deposited as well as any interest earned as time passes. This compound interest can be described by the expression

*P*(1 +*r*)*, where**P*represents the initial amount deposited,*r*represents the interest rate, and*n*represents the number of years that pass. How does a change in each variable affect the value of the expression?This applet is provided by Walch Education as supplemental material for their mathematics programs. Visit www.walch.com for more information.