Join IDNLearn.com and become part of a knowledge-sharing community that thrives on curiosity. Discover comprehensive answers from knowledgeable members of our community, covering a wide range of topics to meet all your informational needs.

guys, please help! i will give brainlist

Examine the differences between simple interest and compound interest. Explain how each is calculated.


Sagot :

Answer

Simple interest is based on the principal amount of a loan or deposit

Step-by-step explanation:

In contrast, compound interest is based on the principal amount and the interest that accumulates on it in every period.

Simple interest is calculated by the equation-

P x N x R

(P= principle amount)
(N= number of years)
(R= rate of interest as a decimal)

Whereas compound interest is calculated by the formula

P(1+R) to the power of N