Question

What is simple interest and compound interest with example

Answer 1

simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interestthat 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 thancompound interest.

simple interest =prt

compound interest =P [(1 + i)n – 1]

Answer 2

Answer:

Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as "interest on interest

@Disharupsa

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