Comparing Simple and Compound Interest 100 10 Use the slider to see what happens over time. Principal (P) = Rate (R%) = Time=0 Simple 130 125 120 115 110 105 100 95 90 85 80 75 YAMSI AUSTRALIAN MATHEMATICAL SCIENCES INSTITUTE 1 Year 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 0 1 2 3 4 5 6 7 8 9 10 Old Total $100 $? $? $? $? $? $? $? $? $? Simple interest Earned $0 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 New Total $100 $? $? $? $? $? $? $? $? $? $?

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
icon
Related questions
Question
0
Comparing Simple and Compound Interest
Principal (P) =
Rate (R%) =
Use the slider to see what happens over time.
Time = 0
Simple
100
10
Compound
130
125
120
115
110
105
100
95
90
85
80
75
70
65
VAMSI
AUSTRALIAN
MATHEMATICAL
SCIENCES
INSTITUTE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
A
Year
0
1 $100
2 $?
3
$?
4
5
6
7
8
9
10
18 Year
A A A A
Old Total
$?
B
$?
$?
$?
$?
$?
$?
Old Total
C
Simple
interest
Earned
$0
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
Compound
Interest
Earned
D
New
Total
$100
$?
$?
$?
$?
$?
$?
$?
$?
$?
$?
New
Total
Transcribed Image Text:0 Comparing Simple and Compound Interest Principal (P) = Rate (R%) = Use the slider to see what happens over time. Time = 0 Simple 100 10 Compound 130 125 120 115 110 105 100 95 90 85 80 75 70 65 VAMSI AUSTRALIAN MATHEMATICAL SCIENCES INSTITUTE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 A Year 0 1 $100 2 $? 3 $? 4 5 6 7 8 9 10 18 Year A A A A Old Total $? B $? $? $? $? $? $? Old Total C Simple interest Earned $0 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 Compound Interest Earned D New Total $100 $? $? $? $? $? $? $? $? $? $? New Total
Compound
80
75
70
65
60
55
50
45
40
35
y scale
30
25
20
15
10
5
0
1
x scale
2
3
4
5
6
7
8
9
10
14
15
16
17
18 Year Old Total
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
OIN 3 +SON&O
0
1 $100
2 $?
£ £ £ £ £ £ £ £ £
$?
4 $?
5 $?
6 $?
7 $?
8 $?
9 $?
10 $?
Compound
Interest
Earned
$0
$?
$?
$?
$?
$?
$?
$?
$?
$?
$?
New
Total
$100
$?
$?
$?
$?
$?
$?
$?
$?
$?
$?
Transcribed Image Text:Compound 80 75 70 65 60 55 50 45 40 35 y scale 30 25 20 15 10 5 0 1 x scale 2 3 4 5 6 7 8 9 10 14 15 16 17 18 Year Old Total 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 OIN 3 +SON&O 0 1 $100 2 $? £ £ £ £ £ £ £ £ £ $? 4 $? 5 $? 6 $? 7 $? 8 $? 9 $? 10 $? Compound Interest Earned $0 $? $? $? $? $? $? $? $? $? $? New Total $100 $? $? $? $? $? $? $? $? $? $?
Expert Solution
Step 1

For simple interest, the interest is earned only on the initial Principal amount(P) while for compound interest, the interest is earned on the new total each time.

 

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
Calculus: Early Transcendentals
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
Thomas' Calculus (14th Edition)
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
Calculus: Early Transcendentals (3rd Edition)
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
Calculus: Early Transcendentals
Calculus: Early Transcendentals
Calculus
ISBN:
9781319050740
Author:
Jon Rogawski, Colin Adams, Robert Franzosa
Publisher:
W. H. Freeman
Precalculus
Precalculus
Calculus
ISBN:
9780135189405
Author:
Michael Sullivan
Publisher:
PEARSON
Calculus: Early Transcendental Functions
Calculus: Early Transcendental Functions
Calculus
ISBN:
9781337552516
Author:
Ron Larson, Bruce H. Edwards
Publisher:
Cengage Learning