Last updated at Nov. 12, 2018 by Teachoo
Difference between Simple Interest & Compound Interest Simple Interest In simple interest, interest for all years is same. SI is smaller than CI Formula is Interest = (𝑃 × 𝑅 × 𝑇)/100 Interest is on Principal amount only. Compound Interest In compound interest, interest for all years is different. CI is larger than SI Formula is Amount = P (1+𝑅/100)^𝑛 Interest is on previous interest as well as the principal amount.
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