Which of the following is a key difference between simple and compound interest?
Practice Questions
1 question
Q1
Which of the following is a key difference between simple and compound interest?
Simple interest is calculated on the principal only.
Compound interest is calculated on the total amount.
Both are calculated differently.
All of the above.
All statements are true; simple interest is calculated only on the principal, while compound interest is calculated on the total amount including interest.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following is a key difference between simple and compound interest?
Solution: All statements are true; simple interest is calculated only on the principal, while compound interest is calculated on the total amount including interest.
