Concept explainers
To find: Compare simple interest and Compound interest.
Explanation of Solution
Formula for Simple interest:
Where
Formula for Compound interest:
Where
Simple interest is calculated on the principal amount or Original amount.
It means the amount of money earned will be same every year because it is always applied to initial amount or Original amount.
Where as
Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can be regarded as “interest on interest”.
In compound interest the amount of money earned will increase every year because it is applied to the new total after the interest is added each year.
Chapter 6 Solutions
Glencoe Math Accelerated, Student Edition
Additional Math Textbook Solutions
Thomas' Calculus: Early Transcendentals (14th Edition)
University Calculus: Early Transcendentals (3rd Edition)
University Calculus: Early Transcendentals (4th Edition)
Calculus: Early Transcendentals (3rd Edition)
Single Variable Calculus: Early Transcendentals (2nd Edition) - Standalone book
- Calculus: Early TranscendentalsCalculusISBN:9781285741550Author:James StewartPublisher:Cengage LearningThomas' Calculus (14th Edition)CalculusISBN:9780134438986Author:Joel R. Hass, Christopher E. Heil, Maurice D. WeirPublisher:PEARSONCalculus: Early Transcendentals (3rd Edition)CalculusISBN:9780134763644Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric SchulzPublisher:PEARSON
- Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. FreemanCalculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning