balance, compound interest, interest period, principal
TEKS 7(1)(E), 7(4)(D), 7(13)(E)
Simple interest is calculated on the principal. Compound interest is calculated on the balance.
After 0 years When you first make the deposit, no interest is earned. The balance is equal to the principal.
balance = principal
After 1 year After 1 year, compound interest and simple interest are equal.
first year compound interest = simple interest
table with 3 rows and 1 column , row1 column 1 , equals p middle dot r middle dot t , row2 column 1 , equals 100 middle dot 2 percent middle dot 1 , row3 column 1 , equals 2 , end table