Question

What do you mean by compound interest and simple interest? ​

Answer 1

Answer:

The interest, typically expressed as a percentage, can be either simple or compounded. 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.

Answer 2

Answer:

What do you mean by compound interest and simple interest?

Step-by-step explanation:

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Compound Interest

➛Compound interest means that each time interest is paid on to an amount saved or owed, the added interest also receives interest from then on.

Simple Interest

➛Simple interest is interest calculated on the principal portion of a loan or the original contribution to a savings account. Simple interest does not compound, meaning that an account holder will only gain interest on the principal, and a borrower will never have to pay interest on interest already accrued.