The difference between the compound and simple interest is


Amy made a $5,000 deposit in Bank One that pays 6% SIMPLE interest every year, the amount of interest Amy will earn over a 10-year period will be $_____. In the meantime, Tom deposited $5,000 in Bank Two that pays 6% COMPOUND interest, the amount of interest Tom will earn over a 10-year period will be $_____. The difference between the compound and simple interest is called interest on interest.

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Financial Management: The difference between the compound and simple interest is
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