Question

Conclusion differences simple interest andcompound interest

Answer 1

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Compound Interest gives a high return as compared to Simple Interest. In Simple Interest, the principal remains constant while in the case of Compound Interest the Principal changes due to the effect of compounding. The growth rate of Simple Interest is lower than the Compound Interest.

Answer 2

simple interest and compound interest

Simple Interest:

Simple interest is just the interest on the principle taken for any time period.

SI = PRT/100

Compound Interest:

Compound interest is the interest on the principle over the time period and it includes the interest over the interest.

$A = P(1+\frac{r}{100})^{t}$

Difference:

The basic difference between the CI and Si is that the compound interest includes interest over the interest but the simple interest not.