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27 October, 13:13

What is the key difference between simple interest and compound interest, and how does this difference affect the effectiveness of each?

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  1. 27 October, 13:34
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    Simple interest is only based on the principal amount of a loan, while compound interest is based on the principal amount and the accumulated interest. Simple interest is calculated by multiplying the principal amount by the interest rate and the number of periods in a loan.
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