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Topic:
Simple interest
Replies:
3
Last Post:
Jul 2, 2013 9:37 AM




Re: Simple interest
Posted:
Jul 1, 2013 6:11 AM


Joe, I just realized that compound interest is an intuitive proof that e^pi is greater than pi^e. :)
Bob Hansen
On Jun 30, 2013, at 7:59 PM, Robert Hansen <bob@rsccore.com> wrote:
> Simple interest is "simply"... > > Principle X Rate X Time > > 1000 * 0.06 * 6 = 360 > > As compared to "compound interest" which "compounds" the interest each period... > > 1000 * 1.06 * 1.06 * 1.06 * 1.06 * 1.06 * 1.06 > > 1000 * 1.06 ^ 6 = 1419 (thus the interest is 419, compared to 360 when doing simple interest) > > Note that simple interest involves multiplication and compound interest involves exponentiation. > > Bob Hansen > >  End of Forwarded Message >
 End of Forwarded Message



