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Which is better compound Interest or simple interest?

April 26, 2017Business compound Finance Investing simple

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Which is better compound Interest or simple interest?

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If the rate (APR) is the same then: If you are a borrower (paying), then simple interest is better than compound interest. If you are a saver (receiving), then compound interest is better than simple interest. Usually APY (annual percentage yield) is disclosed or calculated, so you can make a valid comparison of APRs with different compounding periods.