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Question
Why is simple interest useful?
Why is simple interest useful?
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Solution
- Simple interest is the method of calculating the amount of interest to be paid on a loan or principal.
- It is more beneficial for borrowers than the compound interest, as it holds overall interest repayments lower.
- For a lender, compound interest is useful, as the total interest expense for the loan will be greater.
- Simple interest is the method of calculating the amount of interest to be paid on a loan or principal.
- It is more beneficial for borrowers than the compound interest, as it holds overall interest repayments lower.
- For a lender, compound interest is useful, as the total interest expense for the loan will be greater.
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