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12 November, 15:34

In 1-2 sentences, describe why compound interest earns more money than simple interest

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  1. 12 November, 15:58
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    Simple interest will only pay a fixed interest amount regardless of how much money there is in the account (or the principal amount). With compounding interest, the interest is added to the principal amount so that each compounding period the amount of the interest increases.
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