2 percent - 5 rates Flashcards
define
compound interest is
the interest on savings calculated on both the initial principal and the accumulated interest from previous periods.
key formula
compound interest equation
A = P(1+r)^t
define
simple interest is
It is calculated using the principal only and does not include compounding interest.
key formula
simple interest equation
A = P(1+rt)
key formula
percent change equation
(new value - old value / old value)*100
define
exponential growth is
the amount at each stage is multiplied by a number greater than 1
confusing concept
how do you graph exponential growth?
the graph creeps up slowly at first but then shoots up faster and faster over time
confusing concept
how do you graph exponential decay?
the graph shoots down at first but then slows down over time
confusing concept
exponential growth/decay equation
y = ax^t
define
what is x in the equation in exponential growth and decay?
x is the rate; x is greater than 1 in exponential growth and less than 1 in decay
technique
linear growth can be modeled by a
line with a positive slope
technique
if there is a slope, it means
that the growth/decay is constant; it goes up/down by the same amount each time
define
exponential decay and linear decay are examples of
negative association
example
when data points are close to forming a smooth downward line or graph, they indicates that
there is a strong negative association
define
a positive association happens when
one thing increases and the other thing also increases
