Two are true, one is not

Exercise and reference answers

Questions

1. False statement

   Compound interest uses the original principal

   Statements

   1. Compound interest uses last year's amount
   2. Simple interest uses the original principal
   3. Compound interest uses the original principal

2. False statement

   Compound interest stays the same each year

   Statements

   1. Compound interest stays the same each year
   2. Compound interest grows each year
   3. Simple interest stays the same each year

3. False statement

   Simple overtakes compound later

   Statements

   1. Both agree in the first year
   2. Simple overtakes compound later
   3. Compound overtakes simple later

Explanation