How does the saying "money breeds money" apply to simple interest? ?

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Step-by-step explanation:

That saying money breeds money means that with money in hand we can create more money with help of various tools and one of these toots is Simple interest.

Simple interest is gaining some extra over the money we already have at the same time keeping our principle amount safe.

For example you have $100 and you lend the money at 20% per year.

after 1 year you will have $20 as interest on $100, next year you again get $20 as interest. Similarly, after 5 years you will $100 as interest. Therefore you double your income in 5 years without much effort. Hence we can say that money breeds money applies to simple interest.

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