a) Does simple interest or compound interest accumulate at a faster rate? b) If you were to
Question:
a) Does simple interest or compound interest accumulate at a faster rate?
b) If you were to take out a loan, would you prefer to be charged simple or compound interest?
Compound InterestCompound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...
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a The compound Interest would accoumulate faster The reason being if the interest is at sim...View the full answer
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Related Book For 
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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