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finlep [7]
3 years ago
14

What is the difference between simple and compound interest?

Social Studies
2 answers:
love history [14]3 years ago
7 0

Answer:

Simple Interest is paid on principal only; compound interest is paid on both principal and interest

Explanation:

Final amount in case of simple interest= Principal + principal×interest rate×number of time period over which interest is valid

final amount in case of Compound Interest= A(1+r/n)^(rt)

Here A=Principal ampunt. r=interest rate, n=number of times interest is multiplied, t= number of time period elapsed

CaHeK987 [17]3 years ago
3 0
<span>Simple interest is paid on the principal only; compound interest is paid on both principal and interest.
</span>
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