Which statements about simple interest and repeated growth are true? Select all that apply.
Simple interest uses the original principal as its base each period.✓Correct answer
Repeated growth applies its multiplier to the updated amount each period.✓Correct answer
At 5% simple interest, 1000 dollars becomes 1102.50 dollars after 2 years.
A population of 200 growing by 20% each year reaches 288 after 2 years.✓Correct answer
Explanation
Simple interest repeatedly uses the starting principal, whereas repeated growth uses the updated balance, and 200 × 1.20 × 1.20 = 288. The claim about 1000 reaching 1102.50 after two years uses repeated growth even though it labels the mechanism simple interest.