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Savatey [412]
3 years ago
5

What is the difference between simple and compound interest?

Business
1 answer:
bezimeni [28]3 years ago
7 0
Let's imagine you have a loan of 10,000. The simple interest would be calculated on the $10,000 so if you have an interest rate of 5%, it would go up 5% each year. Compound interest is basically interest on top of interest. So after every period or year of the loan, you are gaining compound interest on both the original loan amount and the interest you have gained.
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Does A Zebra Think Its Black On White or White On Black??
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Hope this helps.

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