janiyaf8941
20.11.2021 •
Business
For which type of products are concept tests thought to be less effective in predicting the success of a product
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Ответ:
Simple interest is based on principal amount of loan, while the compound interest is based on principal amount plus interest rate accumulated in each period.
Explanation:
Simple interest is calculated on the basis of the principal amount of the loan. While the compound interest is calculated on the basis of principal amount and the interest that is accumulated in each period.
So understanding and calculating simple interest are relatively easier than compound interest. Simple interest is better in case of borrowing or mortgages and car loans etc. Compound interest is better in case of investment as it helps the fund to grow at a faster rate.