interest
interest articles on the Math Mental blog, with worked examples solved step by step.
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Simple vs. compound interest: the difference, formulas and examples
With simple interest, each period's interest is charged only on the initial principal: A = P(1 + r·t), linear growth. With compound interest, it is charged on the accumulated amount: A = P(1 + r)^t, exponential growth. At the same rate, compound interest yields more from the second period on.
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