Question

Interest is always calculated on the ___*


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Answer 1

Answer:

simple interest = (P * R * T) / 100

and

compound interest = P * ( 1 + R / 100 ) power n - 1

Answer 2

Answer:

simple interest is calculated on the principle, or original, amount of a loan. Compound interest is calculated on the principle amount and also on the accumulated interest of previous periods, and can thus be regarded as interest on interest