Simple Interest vs

Simple interest is calculated based on a fixed rate over time. (correct)

Simple interest is calculated based on the original investment plus all interest that has been added.

Simple interest is calculated based on a smaller amount than compound interest.

Simple interest is calculated based on a larger amount than compound interest.

Simple interest results in a larger amount of money over time compared to compound interest.

Simple interest is paid only on the original investment, while compound interest is paid on the original investment plus any interest that has been added.

Simple interest is paid at a fixed rate, while compound interest fluctuates over time.

Simple interest is paid only on a portion of the original investment, while compound interest is paid on the full amount. (correct)

Compound interest is paid only on the original investment, while simple interest is paid on the original investment plus any interest that has been added.

Compound interest is paid on a smaller amount than simple interest.

Compound interest is calculated based on a larger amount than simple interest. (correct)

Compound interest is paid on a fixed rate, while simple interest fluctuates over time.

<p>Compound interest</p> Signup and view all the answers

<p>The interest earned is added to the original investment and becomes part of the new principal.</p> Signup and view all the answers