# What the difference between compound interest and simple interes

2
by jeru34

2016-03-21T19:22:58+05:30

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SIMPLE INTEREST is calculated by multiplying the principal amount by the interest rate and the number of periods in a loan............ COMPOUND INTEREST is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.
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2016-03-21T19:25:14+05:30

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Simple interest is calculated by multiplying the principal amount by the interest rate and the number of periods in a loan.

compound interest, is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.