For this DQ, you calculated simple interest applied to an initial balance.To change this to compound interest, remove the gap in the number of years column C (that is, from 5, continue with 6, 7, 8, and so on), and change the formulas in column E of the spreadsheet so that the account value in each year starting with year 1 is (1+B2) times the account value in the previous year (that is, E3 will be =E2*(1+$B$2), E4 is E3*(1+$B$2), and so on).(For this exercise, you can ignore the values in column D.)

With these changes, again update the rate in B2 until the value at year 10 is $10,000 with a starting balance of $600 in A2.What rate is required now, compared to the rate needed with simple interest?

Similarly, with the rate set at 5%, update the principal in A2 until the value at year 10 is $10,000.What starting principal is required now, compared to the starting principal needed with simple interest?

What explains the difference in results here?What principle does this illustrate?