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Example 2

Money deposited in a bank account earns interest on the initial amount deposited as well as any interest earned as time passes. This compound interest can be described by the expression P(1 + r), where P represents the initial amount deposited, r represents the interest rate, and n represents the number of years that pass. How does a change in each variable affect the value of the expression?
This applet is provided by Walch Education as supplemental material for their mathematics programs. Visit www.walch.com for more information.