10 Questions
What is compound interest?
Interest accumulated from a principal sum and previously accumulated interest
How does compound interest differ from simple interest?
Compound interest includes previously accumulated interest in the principal for the current period
What did Francesco Balducci Pegolotti provide in his book Pratica della mercatura of about 1340?
A table of compound interest for rates from 1% to 8%, for up to 20 years
What did Luca Pacioli's Summa de arithmetica (1494) introduce related to compound interest?
The Rule of 72 for finding the number of years for an investment to double at compound interest
What was significant about Richard Witt's book Arithmeticall Questions, published in 1613?
It was wholly devoted to compound interest, whereas previous writers had usually treated it briefly in just one chapter
Which planets belong to the inner Solar System and have solid surfaces?
Mercury, Venus, Earth and Mars
Where are most of the smaller objects orbiting the Sun found?
Asteroid belt between the orbits of Mars and Jupiter
Which celestial bodies mainly consist of gases and liquids?
Giant planets
What makes up 99.86% of the Solar System's mass?
The Sun
How old is the Solar System believed to be?
4.6 billion years old
Study Notes
Compound Interest
- Compound interest is the interest calculated on both the principal amount and any accrued interest.
- It differs from simple interest, which is calculated only on the principal amount.
History of Compound Interest
- Francesco Balducci Pegolotti's book Pratica della mercatura (circa 1340) provided tables for calculating compound interest.
- Luca Pacioli's Summa de arithmetica (1494) introduced the concept of compound interest and its calculation.
- Richard Witt's book Arithmeticall Questions (1613) was significant for its detailed explanation of compound interest.
The Solar System
- The inner Solar System planets with solid surfaces are Mercury, Mars, Earth, and Venus.
- Most smaller objects orbiting the Sun are found in the asteroid belt between Mars and Jupiter.
- Celestial bodies consisting mainly of gases and liquids are gas giants, such as Jupiter and Saturn.
- The Sun makes up 99.86% of the Solar System's mass.
- The Solar System is believed to be approximately 4.6 billion years old.
Test your knowledge of compound interest with this quiz. Learn about the concept of reinvesting or retaining interest and how it differs from simple interest. Explore the impact of interest rates and compounding frequency on the growth of investments.
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