compound interest is usually better than simple interest because it pays\ninterest on the principal and the…

compound interest is usually better than simple interest because it pays\ninterest on the principal and the interest earned in each period.\ninterest on the entire principal rather than the interest in each period.\nmore, as it is matched by an employers 401k contribution.\nmore often throughout the year rather than once a year.

compound interest is usually better than simple interest because it pays\ninterest on the principal and the interest earned in each period.\ninterest on the entire principal rather than the interest in each period.\nmore, as it is matched by an employers 401k contribution.\nmore often throughout the year rather than once a year.

Answer

Brief Explanations:

Compound - interest calculates interest on the principal and the accumulated interest from previous periods, while simple - interest only calculates interest on the principal. This compounding effect leads to greater growth over time.

Answer:

interest on the principal and the interest earned in each period.