21.1 Arithmetic Growth and Simple Interest - Video

Key Ideas

  • 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.