2. What is the difference between a'smart' and a'smart'? Formulate 2.1 Mathematical techniques/concepts To complete the task, a series of calculations must be conducted to calculate the total amount of interest accumulated over the 6-year period. The mathematical equations associated with the task are the simple interest formula and compound interest …show more content…
This is the second highest profiting interest type, falling just behind simple interest by $14.89. However, it proved to yield higher interest than annual compounding due to the 2% increase of interest along with the higher frequency of compounding. To elaborate, annual compounding only gains interest at the end of each year, whereas monthly compounding gains interest at the end of each month, accelerating the growth of the investment. Though still lower than simple interest and falling far behind the desired goal of $5,000, monthly compounding displays a noticeable upward curve on the data graph, revealing its potential for higher returns over longer