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Given the Same Principal Amount, at the Same Rate Over

Question 21

Multiple Choice

Given the same principal amount, at the same rate over the same period of time, does simple or compound interest earn a higher return?


A) Simple interest earns more because it is assessed on a projected final value of the investment, not the principal amount.
B) Compound interest earns more because it is assessed on a projected final value of the investment, not the principal amount.
C) Simple interest earns more because it is interest earned on the principal amount and any interest accrued up to that point in time.
D) Compound interest earns more because it is interest earned on the principal amount and any interest accrued up to that point in time.

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