Question

What is compound interest and simple interest?​

Answer 1

Step-by-step explanation:

Simple interest is the amount of extra money generated on a sum at a fixed rate and time. The extra money is calculated at the end of time at once.

In compound interest the extra money increases every short intervals but in simple interest , you will get the same extra money every month.

Answer 2

Step-by-step explanation:

Interest for each year is added to the current amount in calculating interest for the next year, without actual withdrawal and reinvestment. Interest calculated thus is called compound interest.

Interest calculated only on the original investment each year is called simple interest.