The excess money received from the compound interest when compared to the simple interest after seven years Introduction: Compound interest refers to the interest gained on the principal as well as the reinvested interest of previous periods. In other words, compound interest refers to the interest earned on the reinvested interest. Simple interest refers to the interest earned on the initial principal every year.

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Chapter 5, Problem 1QP

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To determine: The excess money received from the compound interest when compared to the simple interest after seven years

Introduction:

Compound interest refers to the interest gained on the principal as well as the reinvested interest of previous periods. In other words, compound interest refers to the interest earned on the reinvested interest. Simple interest refers to the interest earned on the initial principal every year.

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