Search All of the Math Forum:

Views expressed in these public forums are not endorsed by NCTM or The Math Forum.

Notice: We are no longer accepting new posts, but the forums will continue to be readable.

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

 Messages: [ Previous | Next ]
 Robert Hansen Posts: 11,345 From: Florida Registered: 6/22/09
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

Date Subject Author
6/30/13 stefen
6/30/13 Robert Hansen
7/1/13 Robert Hansen
7/2/13 Joe Niederberger