Question: 2. What is the difference between simple interest and compound interest? 3. Write out the equation to find the future value of a single amount,

2. What is the difference between simple interest and compound interest?

3. Write out the equation to find the future value of a single amount, and define each of the terms in it.

4. Does the n in the formula (1+i) n always mean compounding on an annual basis?

5. How should the future value equation be modified when compounding occurs more frequently than annually?

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