please help me in difference between simple interest and compound interest application in real life
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Interest is the cost of borrowing money, where the borrower pays a fee to the lender for using the latter's money. ... 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.
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Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interestthat 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.
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