5 Questions
Which of the following statements accurately describes simple interest?
Simple interest is calculated based on a fixed rate over time.
What is the main difference between simple interest and compound interest?
Simple interest is paid only on a portion of the original investment, while compound interest is paid on the full amount.
Why does compound interest result in a larger amount of money over time compared to simple interest?
Compound interest is calculated based on a larger amount than simple interest.
Which type of interest is more likely to result in a larger amount of money over a long period of time?
Compound interest
What happens to the interest earned in compound interest?
The interest earned is added to the original investment and becomes part of the new principal.
The Difference Between Simple Interest and Compound Interest Quiz: Test your knowledge on the difference between simple interest and compound interest. Learn why compound interest leads to greater returns and how it is calculated. Challenge yourself with multiple-choice questions and improve your understanding of these key financial concepts.
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