Concept explainers
To explain: The Difference between compound interest and simple interest.
Answer to Problem 2E
Simple interest is calculated on the principal amount of a loan or deposit. Whereas Compound Interest is calculated on the principal and also on the accumulated interest of previous periods.
Explanation of Solution
Given information:
Simple interest is calculated on the principal amount of a loan or deposit.
In contrast, Compound Interest is calculated on the principal and also on the accumulated interest of previous periods, and can thus be regarded as “interest on interest”.
Chapter 7 Solutions
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Additional Math Textbook Solutions
Introductory and Intermediate Algebra for College Students (5th Edition)
College Algebra (10th Edition)
College Algebra (7th Edition)
Algebra and Trigonometry (6th Edition)
Intermediate Algebra
- Algebra and Trigonometry (6th Edition)AlgebraISBN:9780134463216Author:Robert F. BlitzerPublisher:PEARSONContemporary Abstract AlgebraAlgebraISBN:9781305657960Author:Joseph GallianPublisher:Cengage LearningLinear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning
- Algebra And Trigonometry (11th Edition)AlgebraISBN:9780135163078Author:Michael SullivanPublisher:PEARSONIntroduction to Linear Algebra, Fifth EditionAlgebraISBN:9780980232776Author:Gilbert StrangPublisher:Wellesley-Cambridge PressCollege Algebra (Collegiate Math)AlgebraISBN:9780077836344Author:Julie Miller, Donna GerkenPublisher:McGraw-Hill Education