1. Write the formula to calculate compound interest. Identify the variables. Which variables can be changed with a slider in this simulation?[br][br]2. [b]Effect of compounding: [/b]How does the investment grow differently with different compounding frequencies?[br][br]3. [b]Effect of interest rate: [/b]How does the final balance change as the interest rate increases? [i]Hint: Increase the rate by 1% at a time and note the effect on the investment.[/i][br][br]4. [b]Effect of principal:[/b] How does the principal amount affect the investment growth? How does this compare across different compounding frequencies?[br][br]5. Describe the growth. How does the compounding frequency change the steepness of the curve? [i]Hint: Make a graph.[/i][br][br]6. Based on this animation, which compounding frequency would you choose for your savings, and why?[br]