Compound versus Simple Interest
applied
Explore the growht of compound interest.
Introduction
Do any banks still offer simple interest? Why or why might that not be the case?
Guiding Questions
- What mathematical models apply to this situation?
- What data do you need to collect and how will you analyze it?
- What assumptions are you making in your mathematical model?
- How can you validate your mathematical conclusions?
- What are the limitations of your approach?
Key Mathematical Concepts
Compound Interest
Economics
Exponential Growth
Financial Mathematics