Question
More money is earned with compound interest than simple interest.
True
False
True
False
Answers
GPT-4o mini
True
Compound interest typically results in more money earned over time compared to simple interest, assuming the interest is compounded over multiple periods. This is because compound interest calculates interest on both the initial principal and the accumulated interest from previous periods, leading to exponential growth compared to the linear growth of simple interest, which is calculated only on the principal amount.
Compound interest typically results in more money earned over time compared to simple interest, assuming the interest is compounded over multiple periods. This is because compound interest calculates interest on both the initial principal and the accumulated interest from previous periods, leading to exponential growth compared to the linear growth of simple interest, which is calculated only on the principal amount.