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klasskru [66]
3 years ago
9

Compound interest is different from simple interest because you earn money on previous ​

Mathematics
1 answer:
Nataliya [291]3 years ago
5 0

Answer:

Simple interest is calculated based only on the principal balance, whereas compound interest is calculated based on the principal balance and the accumulated interest from the previous periods. This means compound interest will make the amount owed grow at a much faster rate than simple interest.          

Hope this helps!!!

Step-by-step explanation:

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