Why is simple interest useful?

testatorstcfg

testatorstcfg

Answered question

2023-02-19

Why is simple interest useful?

Answer & Explanation

Adrienne Clark

Adrienne Clark

Beginner2023-02-20Added 9 answers

The process for figuring out how much interest needs to be paid on a loan or principal is known as simple interest. Because it keeps total interest payments lower than compound interest, it is better for borrowers. For a lender, compound interest is useful, as the total interest expense for the loan will be greater.

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