Question

difference between simple interest and compound interest

Answer 1

Simple interest is  generally the amount other than principle that that  person is going to pay who has taken the loan from bank .Compound interest is the interest on intrest. Major difference is between their formula's ----------
COMPOUND INTEREST = P(1+R/100)^n
SIMPLE INTEREST = P*R*T/100

Answer 2

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.

Explanation:

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