Use a recurrence relation to model a compound interest loan or investment.

gm-u4-t1-s1-d1

2 interactives — choose one

Each period multiplies the balance

manipulative

Watch compound interest as A_{n+1} = R A_n — interest flies onto the balance with a growing ledger and closed-form check.

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Add a constant, or multiply?

organiser

Side-by-side graphs and table — simple interest is arithmetic; compound interest is geometric.

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