Distinguish between Simple and Compound Interest. (maths) ans in one word
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Answered by
2
Answer:
simple interest is added on principal amount and compound interest is added on remaining amount
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Answer:
Simple interest is calculated on the principal, or original, amount of a loan.
Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as
"interest on interest."
Step-by-step explanation:
Simple Interest=P×r×n
where:
P=Principal amount
r=Annual interest rate
n=Term of loan, in years
Compound Interest=P×(1+r)^t - P
where:
P=Principal amount
r=Annual interest rate
t=Number of years interest is applied
Hope it helps you!
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