Difference Between Simple and Compound Interest

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<div align&equals;"center"><a href&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;09&sol;image6&period;png"><img style&equals;"border-right-width&colon; 0px&semi; display&colon; inline&semi; border-top-width&colon; 0px&semi; border-bottom-width&colon; 0px&semi; border-left-width&colon; 0px" title&equals;"image" border&equals;"0" src&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;09&sol;image&lowbar;thumb6&period;png" width&equals;"500" height&equals;"125" &sol;><&sol;a> <&sol;div>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify">At the end of fifth year&comma; in simple interest total amount will be 1400&period; In this case &dollar;1000 is the initial investment and &dollar;400 is the interest earned&period; In compound interest at the end of 5th year the total amount grows to 1469&period;33 which clearly shows that compound interest gives higher return on investment than the simple interest&period; It means that the simple interest is just the interest earned on initial investment whereas compound is interest on interest&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;