Question

Describe the relationship between the mathematics of calculating simple interest, and the mathematics behind analysing arithmetic sequences. How might simple interest be described as a problem of applied arithmetic sequences?

Answer 1

Formula for simple interest is Y = A(1 + rX), where
Y = cumulative balance,
A = original balance,
X = number of periods of interest and
r = interest rate.

Y = A(1 + rX) is a linear function. And basic interest grows linearly, making this an example of an arithmetic sequence.

Answer 2

Thank you so much!