Multiplicative reasoning
Overview
– Growth and decay (To include loan sharks and exponential growth in diseases)
– Compound measures
– Ratio and proportion
Example Key Words
Compound Interest
The amount of interest earned each year is added onto the original capital and included in the following year’s calculation
Simple Interest
The total amount of interest is added on at the end the term
Depreciation
The reduction in value of an asset over time.
Growth and Decay
Using a compound interest type formula to calculate the growth of a population or depeciation of an asset
Direct Proportion
A direct relationship between the increase or decrease of two variables.
Inverse Proportion
The relationship between one variable is directly proportional to the reciprocal of another.