What this lesson teaches
Simple and compound interest.
Compare simple and compound interest growth!
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Simple and compound interest.
Graphing both interest types on the same axes makes the divergence between them visually dramatic — the 'power of compounding' is felt, not just calculated. This visual and emotional impact is what makes the concept memorable enough to influence real financial decisions later in life.
1. Calculate SI for 3 years at 10% on 1000. 2. Calculate CI same terms. 3. Compare. 4. Graph growth.