Difference Between Simple and Compound Interest

The basic difference between simple and compound interest is that the simple interest is only calculated on the principal amount and does not contain the accumulated interest from prior periods. On the other hand compound interest is known as the interest on interest. Basically it is calculated both on the principal amount as well as the accumulated interest in the prior periods. The difference between simple and compound interest could be elaborated with the help of simple problems.

Simple interest

 

 

Compound interest on interest

 

Page: 1 2

kasi

Recent Posts

Porter’s Five Forces of Microsoft

Microsoft Corporation also known as MS is one of the biggest multinational technology-based company in…

2 years ago

Porter’s 5 Forces Analysis of Fast Food Industry

The article is based upon in-depth analysis of Fast Food Industry of Australian Region with…

2 years ago

Apple Inc. – Porter’s Five(5) Forces Analysis

The paper presents detailed overview about the Apple Inc. analysis on the parameters set by…

2 years ago

Marketing Plan – Thomson Holiday Group

The purpose of this research paper is to develop a marketing plan for the Thomson…

2 years ago

Case Study – Jerk Stars Ltd- Sales and Marketing Human Resources Dilemma

1. As applicable to other department managers, a human resources manager invigilates the departments and…

2 years ago

KFC Jamaica – Operation and Services Flow

The purpose of the present article is to formulate a work allocation flow chart of…

2 years ago