pls help
MEDAL is rewarded
Which type of interest (simple or compound) is generally charged for borrowing money for short periods of time and why?

Question

pls help
MEDAL is rewarded
Which type of interest (simple or compound) is generally charged for borrowing money for short periods of time and why?

tkhunny · Answer

Simple.  It means you pay more.

anonymous · Answer

but when we borrow money, don't we want to pay less.

tkhunny · Answer

Why are we posting the same question thrice?
Why are we showing no work?

tkhunny · Answer

WE?  No one cares about that.  The lender is in control.

anonymous · Answer

oh ok. thnx

anonymous · Answer

Simple interest is generally charged for borrowing money for short periods of time. Compound interest is similar but the total amount due at the end of each period is calculated and further interest is charged against both the original principal but also the interest that was earned during that period.