Answer:
Andre states that the applied interest is simple interest, this statement is true.
Step-by-step explanation:
From the given table it is noticed that the value of y increased by 17.50 as the value of x increased by 1.
The rate of change is calculated as
[tex]m=\frac{y_2-y_1}{x_2-x_1}[/tex]
For first two years the rate of change is
[tex]m=\frac{535.00-517.50}{2-1}=17.50[/tex]
The rate of change for next two years is
[tex]m=\frac{552.50-535.00}{2-1}=17.50[/tex]
Similarly, the rate of change for all years in 17.50.
Since the rate of change is same for all years, therefore the future value is increased by a constant rate, therefore the applied interest is simple interest.
So, the statement "the applied interest is simple interest" is true.
