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Section 1

1. Section 1

1.41. Lesson 4 Summary

Mathematics 20-3 Module 2

Section 1: Simple and Compound Interest

 

In this photo a woman is standing in front of a financial graph.

Chris Stein/Lifesize/Thinkstock

Lesson 4 Summary

 

Successful investing means being able to see the big picture. In this lesson the big picture was graphically comparing financial growth through simple and compound interest. You discovered that the bars in a simple interest graph lined up in a straight line, while those for compound interest swept upward to the right in a curve that grew steeper and steeper. This characteristic of compound interest is due to exponential growth.