Question

There are different types of interest, such as ______________ interest, where the interest accrues on both the original loan and the interest itself.

simple
compound
GPT 3.5
The two types of interest mentioned are:
1. Simple interest: In simple interest, the interest is calculated only on the principal amount of the loan or investment.
2. Compound interest: With compound interest, the interest is calculated not only on the principal amount but also on the accumulated interest from previous periods.

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