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Investigation: Comparisons of simple and compound interest

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Outcomes

I.F.LE.1

Distinguish between situations that can be modeled with linear functions and with exponential functions.

I.F.LE.1.a

Prove that linear functions grow by equal differences over equal intervals, and that exponential functions grow by equal factors over equal intervals.

I.F.LE.1.b

Recognize situations in which one quantity changes at a constant rate per unit interval relative to another.

I.F.LE.1.c

Recognize situations in which a quantity grows or decays by a constant percent rate per unit interval relative to another.

I.F.LE.3

Observe using graphs and tables that a quantity increasing exponentially eventually exceeds a quantity increasing linearly.

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