Question

What is the equation for an amount (future value) of an investment that earns simple interest? What is the equation for an amount (future value) of an investment that earns compound interest? Label each variable using arrows. 

Answer 1

$F=P(1+ni)$ - simple interest equation

$F=P(1+i)^n$ - compound interest equation

F - future value, P - present value, n - number of years, i - interest rate.