How does compound interest differ from simple interest


Discussion Post: Time Value of Money

• How does compound interest differ from simple interest, and why is the present value of a future sum always less than that sum's future value?

• What is an amortized loan and what is the relationship between the interest rate and number of years on an amortized loan and the total amount of interest paid?

The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.

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Financial Management: How does compound interest differ from simple interest
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