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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
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
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