The interest earned on both the principal and the accumulated interest in a savings account is known as what?

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1062697

2026-07-31 00:15

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The interest earned on both the principal and the accumulated interest in a savings account is known as compound interest. Unlike simple interest, which is calculated only on the principal amount, compound interest allows the interest to grow on itself over time, leading to potentially higher earnings. This makes it a powerful tool for savings and investment growth.

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