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Buying Insurance

Question 6 • OK-Personal Financial Literacy S1 – EDGNTY-83861 26-27

An investment will grow faster with a monthly interest rate.

Answer
A
compound
B
simple

Explanation

Compound interest earns interest on both the original investment and the interest already accumulated. Simple interest is calculated only on the original amount, so with the same rate and time, compounding makes the investment grow faster. The correct choice is compound.

AI-written and checked against the verified answer.

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