Final answer:
Compound interest generally yields a higher amount compared to simple interest due to its compounding nature.
Explanation:
Compound interest usually results in a higher amount compared to simple interest over time.
Compound interest is calculated on the principal amount plus the accumulated interest, leading to exponential growth.
For example, if [tex]$100 gains $[/tex]15.76 compound interest in three years, it would only gain $15 with simple interest, showcasing the impact of compounding.
Learn more about Compound interest vs. Simple interest here:
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