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Simple interest is interest paid on the original principle only, Compound interest is the interest earned not only on the original principal, but also on all interests earned previously.

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13y ago

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Which type of interest is calculated by adding the interest earned to the principal?

compound... yes it is compound interest.


What is the calculation for a simple compound interest rate?

There is simple interest and there is compound interest but this question is the first that I have heard of a simple compound interest.


What are the major differences between compound interest loan and simple interest loan?

With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.


Is the interest accrued on a student loan simple or compound interest?

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What are some of the uses of compound interest in business?

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Which of the two is exponential function the simple or the compound interest?

Compound interest.


WHAT does the carrot in the formula for compound interest means?

There is no carrot in the compound interest formula!


What is different about compound interest from normal interest?

Compound interest is calculated on the initial principal plus any accumulated interest, resulting in interest earning interest over time. Normal interest, on the other hand, is only calculated on the initial principal amount and does not take into account any interest that has already been earned.


What is earning interest on interest called?

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Interest earned on interest is known as?

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How do you solve compound interest formula for n?

It depends on which compound interest formula you mean. Refer to the Wikipedia Article on "Compound Interest" for the correct terminology.


What is 7.4 percent compound interest on 500.00?

The interest for 1 year is 37.00, whether it is simple or compound interest.