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Drag the tiles to the correct location on the table.

Match each definition or formula to the correct interest type.

1. Interest calculated once on the starting principal
2. Total Interest = Principal [tex]\(\times\)[/tex] APR (as a decimal) [tex]\(\times\)[/tex] Term of Loan
3. Interest calculated multiple times over the course of a loan
4. [tex]\(A = P\left(1+\frac{r}{n}\right)^{nt}\)[/tex]

\begin{tabular}{|l|l|}
\hline
Simple Interest & Compound Interest \\
\hline
& \\
& \\
& \\
\hline
\end{tabular}



Answer :

GinnyAnswer
Let's match the definitions and formulas to the correct interest type.

1. Interest calculated once on the starting principal:
2. Total Interest [tex]$=$[/tex] Principal [tex]$\times$[/tex] APR (as a decimal) [tex]$\times$[/tex] Term of Loan:
3. Interest calculated multiple times over the course of a loan:
4. [tex]$ A=P\left(1+\frac{r}{n}\right)^{n t} $[/tex]:

These definitions and formulas correspond to Simple and Compound Interest as follows:

\begin{tabular}{|l|l|}
\hline Simple Interest & Compound Interest \\
\hline Interest calculated once on the starting principal & Interest calculated multiple times over the course of a loan \\
Total Interest [tex]$=$[/tex] Principal [tex]$\times$[/tex] APR (as a decimal) [tex]$\times$[/tex] Term of Loan & [tex]$ A=P\left(1+\frac{r}{n}\right)^{n t} $[/tex] \\
\hline
\end{tabular}

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