in Rawlinson: Attempt 1 Decide if each statement below is true (1) or false (2). > Simple interest is an example of exponential growth, while compounding is an example of linear growth. The formulas for Payout Annuity and Loans are the same, but some of the variables (Po, d, and N) represent slightly different 1. True things in each formula. 2. False If the compounding is done every year, then that means k = 12 because there are 12 months in a year. Interest earned on an annuity is the difference between what you end up with and how much you put in