21.1 Arithmetic Growth
and Simple Interest - Video
- The initial balance of an account, such as a savings account, is the principal.
At the end of a fixed amount of time, interest is added to the account.
- If a population, measured at regular time intervals, is experiencing
arithmetic growth (also called linear growth), then it is gaining (or losing) a constant amount with each measurement.
- A financial account which is paying simple interest will grow arithmetically in value.