Question

If the interest is calculated half yearly, the compound interest on rs.16000, at 5% per annum, at the end of 1 year

Answer 1

Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period. Since simple interest is calculated only on the principal amount of a loan or deposit, it's easier to determine than compound interest.