Question

Explain the difference between compound interest and simple interest. Use in your own words.

Answer 1

Answer:

Compound interest is when you gain interest on interest already gained but with simple interest you only gain interest on the original amount put in.

Explanation:

Answer 2

Answer:

Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods.  Simple interest is simple. Each year, the interest is calculated as a percentage of the principal, as follows: Interest= (principal) x (rate) x (time).

Explanation:

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