Article: Compound interest means that as your interest is earned, the interest goes back into the account, and you begin earning (or paying) interest on top of interest. As a simple example, if you deposit $100 at 5% interest per year, then at the end of one year you will earn $5 interest. If you return that to the account, then at the end of the second year, you will earn 5% of $105, not just the original $100. Over time, this can increase quite substantially. The formula for calculating the value (A) of compounding interest is: A=P(1+rn)nt{\displaystyle A=P(1+{
rac {r}{n}})^{nt}} As with simple interest, the calculation begins with the amount of the principal. The calculation is the same, whether you are calculating interest on money borrowed or money loaned. The principal amount is generally denoted with the variable P{\displaystyle P}. The interest rate must be agreed upon at the outset and should be presented in a decimal number for calculation. Recall that the percent number can be converted to a decimal by dividing by 100 (or, as a shortcut, moving the decimal point two places to the left). Make sure that you know the length of time that the interest rate applies to. The rate is noted algebraically as r{\displaystyle r}. For example, a credit card may advertise interest of 15% per year. However, interest is generally applied each month, so you may want to know the monthly interest rate. In that case, divide by 12, to find the monthly interest rate of 1.25% per month. These two rates, 15% per year or 1.25% per month, are equivalent to each other. Compounding interest means that the interest will be calculated periodically and added back to the principal amount. For some loans, this may happen once a year. For some, it may happen each month or each quarter. You need to know how many times a year the interest will be compounded. If interest is compounded annually, then n=1. If interest is compounded quarterly, for example, then n=4. The term is the length of time for which the interest will be calculated. The term is generally measured in years. If you need to calculate interest for some other length of time, you will need to convert into years. For example, for a loan of one year, then t=1{\displaystyle t=1}. But, for a term of 18 months, then t=1.5{\displaystyle t=1.5}. Suppose, for this example, you deposit $5,000 into a savings account that pays 5%, compounded monthly. What will be the value of this account after three years? First, identify the variables that you need to solve the problem. In this case: P=$5,000{\displaystyle P=\$5,000} r=0.05{\displaystyle r=0.05} n=12{\displaystyle n=12} t=3{\displaystyle t=3} Once you have understood the situation and identified the variables, enter them into the formula to find the amount of the interest. For the problem started above, this would look as follows: A=P(1+rn)nt{\displaystyle A=P(1+{
rac {r}{n}})^{nt}} A=5000(1+0.0512)123{\displaystyle A=5000(1+{
rac {0.05}{12}})^{12*3}} A=5000(1+0.00417)36{\displaystyle A=5000(1+0.00417)^{36}} A=5000(1.00417)36{\displaystyle A=5000(1.00417)^{36}} A=5000(1.1616){\displaystyle A=5000(1.1616)} A=5808{\displaystyle A=5808} Thus, after three years, compound interest will have amounted to $808, in addition to the original $5,000 deposit.
Question: What is a summary of what this article is about?
Understand the meaning of compound interest. Know the principal amount. Measure the rate. Know when the interest will compound. Know the term of the loan. Identify the variables from the situation. Apply the formula and calculate the compounded interest.

First position is arguably the easiest basic ballet position. Stand with your feet together, ensuring your heels touch. Then, turn each leg outward so your feet are perpendicular to your torso. Keep your heels together, but allow your feet, calves, and thighs pivot until your feet form a straight line parallel with your shoulders. The end stance is first position. Your whole leg from your thigh to your feet be turned outward. The end result will turn your feet in a straight line on the floor, with your heels in the middle. First position for the arms looks like you're holding a beach ball in the middle of your stomach. Keep your fingers about 4 inches (10cm) apart, and tilt your hands just slightly toward your face. Second position is similar to first. Instead of your heels touching, though, move your feet about hip distance apart. Make sure your feet still face opposite directions, and that your legs turn out along with your feet. Second position for the arms is like the first position arms, but open. Take your first position arms and open them at the elbows to about the width of your feet. Tilt your palms slightly toward you. For third position, start in first position. With your feet still facing opposite directions, slide one foot directly in front of the other. Touch the heel of your front foot to the instep of your back foot, and bring your front calf directly in front of your back calf. Third position arms can best be thought of as a combination of first and second position. Start with your arms in first position. Open just one arm up to second position, leaving the other arm in first position. Begin in first position, then bring one foot in front of the other, making sure the toes on each foot still point in opposite directions. Position your forward foot about 4 to 5 inches (10 to 13cm) in front of your back foot, and line the heel of the forward foot up with the toes of the back foot. Unlike in other positions, your feet do not touch in fourth position. Getting your spacing right can be tricky. Look up pictures of fourth position online and watch video tutorials to give you an idea of how your feet should be positioned. For fourth position arms, start with your arms in first position. Bring one arm up above your head, maintaining the bend at the elbow. Face the palm of your raised arm downward and hold it just in front of your head. Fifth position uses the same foot directions as fourth, but your feet are positioned much closer together. Start in fourth position and bring your feet in close together, stopping when they are about 1-2 finger widths apart. As with fourth position, turn your legs out along with your feet. Avoid bending them at the knee. Hold them as tall and straight as possible. Fifth position arms are an extension of fourth position, as well. Bring your arms into fourth position. Then, bring your lower arm up above your head to meet your raised arm. Make sure to leave just enough space between your fingers so that they don't touch.
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One-sentence summary --
Start with first position. Move into second position. Transition to third position. Open to fourth position. Finish in fifth position.