Question

What is the difference between Compound Interest and simple interest???

Answer 1

Answer:

Simple interest is calculated using initial principle while compound interest is calculated considering the interest also .

Step-by-step explanation:

Interest is the cost of borrowing money, where the borrower pays a fee to the lender for using his money. The interest, typically expressed as a percentage, can either be compounded or simple .

Simple interest is based on the principal amount , while compound interest is based on the principal amount and the interest that adds onto it in every period and the final principle is used for calculating the interest.

Simple interest is calculated  on the principal amount of a loan and it's easier to find out than compound interest.