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Sagot :
Answer: Is below
Step-by-step explanation:
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.
Answer:
See below.
Step-by-step explanation:
[tex]\boxed{\underline{\text{Compound Interest}}}[/tex]
Compound interest is earned on an investment when the interest earned for each period is added to the previous principal.
Compound interest formula:
[tex]\Longrightarrow: \sf{A=P(1+\dfrac{r}{n})^n^t}}[/tex]
- A: represents the current balance or compound amount in the account.
- P: represents the principal (the original amount deposited).
- R: annual interest rate (in decimal form).
- N: the number of times per year that interest is compounded.
- T: time in years the money has been invested.
[tex]\boxed{\underline{\text{Simple interest}}}[/tex]
A simple interest investment is one that earns interest only during the first period but does not earn interest thereafter.
Simple interest formula:
[tex]\Longrightarrow: \sf{I=PRT}[/tex]
- I= Interest
- P= Principal
- R= Rate
- T= Time
I hope this helps, let me know if you have any questions.
Learn more about how to solve with compound interest and simple interest at:
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