GMAT Tip: Americans Protest Iran Nuclear Testing

by Mark Wong on September 27, 2010 · 1 comment

in GMAT

No, this isn’t a political post, as this isn’t a world affairs blog.  It’s just a mnemonic device to memorize the compound interest formula.  One of my friends told me this is how he remembered it for the GMAT.  You can just memorize this one, as replacing “1” for the “n” value (number of periods) will give you the simple interest formula.  The “I” in Iran stands for the number 1.

Americans Protest Iran Nuclear Testing

  • P = principal amount (initial investment)
  • r = annual nominal interest rate (as a decimal)
  • n = number of times the interest is compounded per year
  • t = number of years
  • A = amount after time t
  •  

    Do you have another mnemoic device for this formula?  (Maybe one less political?)

    { 1 comment… read it below or add one }

    salNo Gravatar November 30, 2015 at 5:11 am

    Well you’ve given us a great mnemonic! but how do we remember that this mnemonic is for COMPOUND INTEREST?
    Americans Protest Iran Nuclear Testing
    –> Because the cost is too much & compounds over the years

    Just added that 🙂 Thanks for the awesome mnemonic!!

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