1. **Problem Statement:** You are tasked to create a tri-fold brochure on Simple and Compound Interest with specific panels including definitions, formulas, examples, and computations based on assigned scenarios. 2. **Simple Interest Definition and Formula:** Simple Interest (SI) is the interest calculated only on the principal amount. The formula is: $$SI = P \times r \times t$$ where $P$ is the principal, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. 3. **Simple Interest Example:** If you invest 1000 at 5% per year for 3 years, then $$SI = 1000 \times 0.05 \times 3 = 150$$ So, the interest earned is 150. 4. **Compound Interest Definition and Formula:** Compound Interest (CI) is interest calculated on the principal plus previously earned interest. The formula is: $$A = P \left(1 + \frac{r}{n}\right)^{nt}$$ where $A$ is the amount after time $t$, $n$ is the number of compounding periods per year. The compound interest earned is: $$CI = A - P$$ 5. **Compound Interest Example:** If you invest 1000 at 5% compounded annually for 3 years, $$A = 1000 \left(1 + \frac{0.05}{1}\right)^{1 \times 3} = 1000 \times 1.157625 = 1157.63$$ So, $$CI = 1157.63 - 1000 = 157.63$$ 6. **Assigned Scenario (Example: Group 3 - Emergency Fund Savings) Simple Interest Computation:** Suppose you save 2000 at 4% simple interest for 2 years. $$SI = 2000 \times 0.04 \times 2 = 160$$ Total amount after 2 years: $$A = P + SI = 2000 + 160 = 2160$$ 7. **Assigned Scenario Compound Interest Computation:** Using the same principal and rate but compounded annually: $$A = 2000 \left(1 + \frac{0.04}{1}\right)^{1 \times 2} = 2000 \times 1.0816 = 2163.20$$ Compound interest earned: $$CI = 2163.20 - 2000 = 163.20$$ 8. **Comparison Table:** | Interest Type | Interest Earned | Total Amount | |---------------|-----------------|--------------| | Simple Interest | 160 | 2160 | | Compound Interest | 163.20 | 2163.20 | 9. **Final Advice:** Compound interest yields more savings over time compared to simple interest, especially for longer periods. Start saving early and choose compound interest options to maximize growth. This completes the task for the first assigned scenario. You can replicate similar steps for other groups and scenarios in your brochure.