Compound interest will produce larger investment values than simple interest.

Name: Compound interest will produce larger investment values than simple interest.
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Question

Quizplus · Accepted Answer

Compound interest is calculated not only on the principal amount but also on the accumulated interest of previous periods. This means that with compound interest, the interest earned increases over time and leads to a larger investment value compared to simple interest, which only earns interest on the principal amount.

Compound Interest Will Produce Larger Investment Values Than Simple Interest