$*FV=PV(1+r{)}^2,325(1\mathrm{.}14{)}^2$

Example $5\mathrm{.}3$ An investment pays $12\%$ per year, you invest $$400,$ how much will you have in $3$ years? How much is simple interest? How much is compound interest?

$400(1\mathrm{.}12{)}^3=$$$561\mathrm{.}97$ is how much you'll have

$$48$ in simple interest per year $=$$$144$ total simple interest

$$17\mathrm{.}97$ compound interest

Example $5\mathrm{.}3$ Buy Manhattan. In $1626,$ Peter Minuit bought all of Manhattan for about $$24$ in goods and trinkets $($sounds cheap$),$ but let's say the natives took the $$24$ and could find an investment earning $10\%$ per year, how much would it be worth today? $(391$ years$)$

$24(1\mathrm{.}10{)}^{391}=$$$367$ quadrillion...you could buy the US$,$ Canada, Mexico and the rest of the world

Example $5\mathrm{.}4$ TICO pays a dividend of $$5$ per share, which will increase by $4\%$ forever, what will be the dividend in $8$ years?