Question

Introduction to simple interest and compound interest

Answer 1

Answer:

simple interest is based on the principle amount of a loan or deposit, & simple interest is calculated only on the principle amount of a loan or deposit.

while compound interest is based on the principle amount & the interest that accumulates on it in every period.

compound interest is interest calculated on the initial principle.

compound interest uses the same information as simple interest bt what is new is the frequency of compounding N.