Two are true, one is not
Exercise and reference answers
- Questions
- False statement
- Compound interest keeps one base
- Statements
- Compound interest re-bases each year
- Simple interest keeps one base
- Compound interest keeps one base
- False statement
- Simple pulls ahead afterwards
- Statements
- Simple pulls ahead afterwards
- The two agree in year one
- Compound pulls ahead afterwards
- False statement
- A constant yearly interest signals compounding
- Statements
- A rising yearly interest signals compounding
- A constant yearly interest signals compounding
- A constant yearly interest signals simple interest
Explanation
The false line freezes the compound base. Source: syllabus Maths, Ch 7 Comparing Quantities.