Question: Simple and Compounding Interest If you deposit $ 1 2 5 in an account that pays 1 0 % interest annually and you don't touch
Simple and Compounding Interest
If you deposit $ in an account that pays interest annually and you don't touch it for years, what is the interest earned on your initial deposit after years?
Use the Simple Method of compound interest to solve.
Now use the formula for compounding interest to determine the increase in value of your $ deposit after years.
tableYear Amount in the Bank,$Interest Rate,TotalYear AmountInterest Rate,TotalYear AmountInterest Rate,Total
What do you notice about the totals? Are they the same?
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