would you earn more money with simple interest or with compound interest in a savings account?\n simple\n…

would you earn more money with simple interest or with compound interest in a savings account?\n simple\n compound\n the same\n depends on the fed\nwhich is true for amortization?\n the more of a loan you pay off ahead of time the less interest you will end up paying\n the more of a loan you pay off ahead of time them more interest you will end up paying

would you earn more money with simple interest or with compound interest in a savings account?\n simple\n compound\n the same\n depends on the fed\nwhich is true for amortization?\n the more of a loan you pay off ahead of time the less interest you will end up paying\n the more of a loan you pay off ahead of time them more interest you will end up paying

Answer

Explanation:

Step1: Understand simple and compound interest

Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal and the accumulated interest. Over time, compound - interest leads to more growth as interest is earned on previously earned interest. So, in a savings account, compound interest will earn more money.

Step2: Understand amortization

Amortization of a loan means that part of each payment goes towards principal and part towards interest. When you pay off more of the loan ahead of time, there is less principal remaining on which interest is calculated. So, the less interest you will end up paying.

Answer:

  1. B. compound
  2. The more of a loan you pay off ahead of time the less interest you will end up paying