Describe the difference between simple and compound interest. what types of
functions are used to model both types of interest?

Simple interest

Compound interest  

Step-by-step explanation:

If a certain sum of money P is increasing at a rate of r% simple interest annually, then after n years the increases sum will become

Therefore, in simple interest the interest is calculated on the fixed principal amount P.

So, after 1 year the sum will become

After 2 years the sum will become  

Therefore, in each year the sum is increasing by a fixed amount and it is the simple interest which is calculated on the principal P always.

But, if we consider P is increasing at a rate of r% interest annually and is compounded every year then after n consecutive years the sum will become   .

So, after first year the sum will become .

After 2 years the sum will become

Therefore, in the 2nd year the interest is calculated on i.e. the principal after one year but not on P only.

Similarly the interest after 3rd year will be calculated on the principal that becomes after 2 years. (Answer)

i think the answer is .36

step-by-step explanation:

what i did was only 2.88 divided by 8

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step-by-step explanation: