Why does compound interest result in higher future values than simple interest?
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Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...
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Introduction to Corporate Finance
ISBN: 978-1119171287
4th edition
Authors: Laurence Booth, Sean Cleary, Ian Rakita
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