Compare and contrast the simple and compound interest formulas. Which one of the following statements is correct? Simple interest and compound interest formulas both yield principal plus interest, so you must subtract the principal to get the amount of interest.Simple interest formula yields principal plus interest, so you must subtract the principal to get the amount of interest; Compound interest formula yields only interest, which you must add to the principal to get the final amount.Simple interest formula yields only interest, which you must add to the principal to get the final amount; Compound interest formula yields principal plus interest, so you must subtract the principal to get the amount of interest.Simple interest and compound interest formulas both yield only interest, which you must add to the principal to get the final amount.

Given simple and compound interest formulas

Answered: Compare and contrast the simple and…

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Compare and contrast the simple and compound interest formulas. Which one of the following statements is correct?

Simple interest and compound interest formulas both yield principal plus interest, so you must subtract the principal to get the amount of interest.
Simple interest formula yields principal plus interest, so you must subtract the principal to get the amount of interest; Compound interest formula yields only interest, which you must add to the principal to get the final amount.
Simple interest formula yields only interest, which you must add to the principal to get the final amount; Compound interest formula yields principal plus interest, so you must subtract the principal to get the amount of interest.
Simple interest and compound interest formulas both yield only interest, which you must add to the principal to get the final amount.

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