In dealing with time value of money, "simple interest rate" is normally considered when calculating the future growth of money.

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In dealing with the time value of money, "compound interest rate" is normally considered when calculating the future growth of money, as it takes into account the interest on both the initial principal and the interest that has been added to the principal over time. Simple interest only calculates interest on the initial principal amount.

In Dealing with Time Value of Money, "Simple Interest Rate