142k views
3 votes
Is interest compounded annually the same as simple interest? Explain

1 Answer

2 votes

Answer:

Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period. Since simple interest is calculated only on the principal amount of a loan or deposit, it's easier to determine than compound interest.

Explanation:

hopefully that answered your question

User Artem Moskalev
by
6.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.