Question

What is compound intrest and simple intrest give an example

Answer 1

Answer:

1) If interest on a certain sum borrowed for a certain period is calculated uniformly, then it is called Simple Interest.

2) If in any transaction it is agreed that the interest as soon as it becomes due after each prefixed period is added to the principal and then whole amount produces interest for the next period and so on, then the interest calculated in this way is called Compound Interest.