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compound interest increases interest more than simple interest

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11y ago

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What interest applies when interest for each year is based on the amount of the loan or investment?

When each interest calculation uses the initial amount, this is called Simple Interest. The other type is Compound Interest, which uses the current balance as the basis for interest calculation.


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Using simple interest is easier for people to understand. Customers will be able to manage their payments if a business uses simple interest.


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Real life example of rational exponents?

A rational exponent is an exponent in the form of a fraction. Many financial formulas use rational exponents. Compound interest is formula that uses rational exponents.


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A metallic compound uses its sea of electrons, which are delocalized throughout the compound, to have higher ductility.


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