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In Business / College | 2025-07-03

Which type of interest allows your savings to grow faster by paying interest on the interest you've already earned?
A. Simple interest
B. Negative interest
C. Compound interest
D. Escalating interest

Asked by shamikaroberson92

Answer (2)

Compound interest allows your savings to grow faster by paying interest on both the initial amount and the interest that has accumulated over time, unlike simple interest. This exponential growth effect can significantly enhance the value of your savings. Understanding this concept can help you maximize your financial growth. ;

Answered by GinnyAnswer | 2025-07-04

The correct answer is C. Compound interest allows savings to grow faster because it pays interest on both the principal and the interest earned previously. This leads to exponential growth, which is a key advantage over simple interest.
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Answered by Anonymous | 2025-07-13

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