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 $? $? $? $? $? $? $? $? $? $?
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...
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Question

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

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() while for compound interest, the interest is earned on the new total each time.
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