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Author Question: The primary difference between simple and compound interest is that (Read 121 times)

mrsjacobs44

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Question 1

The amount of money that would have to be invested today at a given interest rate over a specific period in order to equal a future amount is called
◦ future value.
◦ present value.
◦ future value interest factor.
◦ present value interest factor.

Question 2

The primary difference between simple and compound interest is that
◦ simple interest is only paid at the end of the investment period.
◦ compound interest entails receiving interest payments on previously earned interest.
◦ compound interest is paid up front and not when the investment matures.
◦ simple interest is not taxed by the federal government.
◦ simple interest earns a higher interest rate on reinvested interest than compound interest.


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Marked as best answer by mrsjacobs44 on Apr 25, 2021

jackie

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mrsjacobs44

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


komodo7

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Reply 3 on: Yesterday
Excellent

 

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