Question

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What are the two costs used to compare credit offers?
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Question 2 (5 points)
What is the difference between simple and compound interest?

Answer 1

#2Simple interest is interest paid only on the original investment whereas compound interest paid both on the original investment and on all interest that has been added to the original investment. Since compound interest is calculated based on a larger amount than simple interest, it results in a larger amount of money over time.