Why does compound interest result in higher future values than simple interest?

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Why does compound interest result in higher future values than simple interest?
Compound Interest
Compound 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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Introduction to Corporate Finance

ISBN: 978-1119171287

4th edition

Authors: Laurence Booth, Sean Cleary, Ian Rakita

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