Question

difference between simple and compound interest​

Answer 1

Answer:

Simple interest is based on the principal amount of a loan or deposit.

In contrast, compound interest is based on the principal amount and the interest that accumulates on it in every period

Answer 2

Answer:

Simple interest paid or received over a certain period is a fixed percentage of principal amount that was borrowed or lent.

Compoud interest accrues and is added to accumulated interest of previous periods so borrower must pay interest on interest as well as principal amount.