Q: Explain to the client the main differences between simple interest versus compound interest.

A: Simple vs compound interest is not hard to understand
Basically, simple interest is interest paid on the original principal only
For example,4000 dollars is deposited into a bank account and the annual interest rate is 8%. [ However, coumpound interest is the interest earned not only on the original principal, but also on all interests earned previously
In other words, at the end of each

year, the interest earned is added to the original amount and the money is reinvested ]

Weegy: Given interest of $1,632 with principal of $16,000 for 306 days (ordinary interest), results in a rate of? 10 percent 12 percent 12 1/2 percent 13 percent None of these (More)

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