Question

The difference between simple and compound interest in a savings account is that ______________. Question 16 options: You will always earn less than 10% interest with a simple interest savings account You will always earn more than 10% interest with a compound savings account. You will earn more interest with a compound interest savings account You will earn more interest with a simple interest in a savings account

Answer 1

The difference between simple and compound interest in a savings account is that You will earn more interest with a compound interest savings account

Step-by-step explanation:

The interest in a compound interest savings account is greater than the interest in a simple interest savings account because compound account takes the account balance plus previous paid interest (Balance+previous interest) in order to calculate the interest that the bank is going to pay for the funds that are in the account.

However, simple interest saving account only calculate the interest based on the current balance of the account.