what is difference between compound interest and simple interest
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Simple Interest. Simple interest is calculated using the following formula:Simple Interest = Principal amount (P) x Interest Rate (I) x Term of loan or deposit (N) in years. Generally, simple interest paid or received over a certain period is a fixed percentage of theprincipal amount that was borrowed or lent.
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Simple interest is a quick method to solve interest charge on loan.
Compound interest is the addition of interest to the principal sum of loan.
Hope it helps u.....
Compound interest is the addition of interest to the principal sum of loan.
Hope it helps u.....
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