Question

Which of the following best describes the difference between simple and compound interest?

Simple interest is easier to calculate than compound interest.

Simple interest earns interest on the previous interest earned only.

Compound interest earns interest on the principal plus any previous interest earned.

Compound interest earns interest on the principal only.

Answer 1

Answer:

Compound interest earns interest on the principal plus any previous interest earned.

Step-by-step explanation:

compound interest gets its name because the interest keeps on 'compounding' which means earning interest on interest

Answer 2

Answer:

Compound interest earns interest on the principal plus any previous interest earned.

Step-by-step explanation: