why is there more money accumulate in an account that pays a lower interest rate compounded frequently rather than a simple interest account that pays a higher interest rate
Because the interest is added to the sumtotal of previous year's balance which includes the pricipal plus the interest earned from that year.
BTW Interest is Haraam...
And btw matsui is a non-muslim
Remember for the above to be true the principal must be there for more then one time period.
The interest is constantly being compounded on top of the 'principal + interest' compounded for each time period successively. It's simply an exponential effect and naturally earns you more $ at the end than would a steady one-time interest rate.
thanx guys fer helpin me out..
btw it was my math hmk question.. nothin personal