what are the benefits of simple interest

jeanettealger

Welcoemto the forum

You basically pay interest on the principal only not a double interest.

You save mponey with simeple interest

Good luck

interest is calculated in 2 ways:

simple interest: interest is calculated as

interest = principal * interest rate in % * yr
principal after n yr = principal + interest

Compunded interest :
principal after n yr = principal * power((1 + interest Rate), yr)

you can easily say that pricipal will increase faster in case of compounded interest rate.