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bekas [8.4K]
3 years ago
13

Explain the difference between simple interest and compound interest.

Mathematics
1 answer:
USPshnik [31]3 years ago
8 0

Simple interest:

 Simple interest is simple. Each year, the interest is calculated as a percentage of the principal, as follows: Interest= (principal) x (rate) x (time).

Compound interest:

Compound interest<span> is calculated on the principal amount and also on the accumulated </span>interest <span>of previous periods.</span>

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