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Business, 23.02.2020 02:47 raeganwelch

How does simple interest differ from compound interest? Simple interest rates are between 1-5% while compound interest rates are over 5%. You earn simple interest in a savings account and compound interest on an investment. Simple interest is calculated on principal alone; compound interest is calculated on the principal as well as the interest you’ve already earned. Simple interest is calculated on the principal as well as the interest you’ve already earned; compound interest is calculated on principal alone.

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