what are interest and simple interest
Answers
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Answer:
Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan. ... Simple interest is based on the principal amount of a loan or deposit. In contrast, compound interest is based on the principal amount and the interest that accumulates on it in every period.
Formula
A = P (1 + rt)
A = final amount
P = initial principal balance
r = annual interest rate
t = time (in years)
Answered by
4
Answer:
Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan. ... Simple interest is based on the principal amount of a loan or deposit. In contrast, compound interest is based on the principal amount and the interest that accumulates on it in every period
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