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What is the difference btw simple …

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What is the difference btw simple interest and compound intrest?
  • 1 answers

Gaurav Seth 7 years ago

<th>BASIS FOR COMPARISON</th> <th>SIMPLE INTEREST</th> <th>COMPOUND INTEREST</th>
Meaning Simple Interest refers to an interest that is calculated as a percentage of the principal amount. Compound Interest refers to an interest which is calculated as a percentage of principal and accrued interest.
Return Less Comparatively high
Principal Constant Goes on changing during the entire borrowing period.
Growth Remains uniform Increases rapidly
Interest charged on Principal Principal + Accumulated Interest
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