Question

what is difference between simple and compound interest?

Answer 1

in simple interest rate of interest is applied on the principal amount every time. in case of compound interest the rate of interest is calculated on the amount that is inclusive of interest

Answer 2

Hey Friend___

Here is ur answer...

Interest is the cost of borrowing money, where the borrower pays a fee to the lender for using the latter's money. 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, while compound interest is based on the principal amount and the interest that accumulates on it in every period. Since simple interest is calculated only on the principal amount of a loan or deposit, it's easier to determine than compound interest.



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