A percentage the interest of the principal is added to the principal making your initial investment grow. When you put money in a bank you may earn interest and when you borrow money you may pay. Simple interest is almost never used in the real world with compound interest being preferred.
Interest calculated as a percent of the original loan.
HttpsbitlyComparingQuantitiesG7In this video we will learn. A percentage the interest of the principal is added to the principal making your initial investment grow. This is different from compound interest where interest is calculated on on the initial amount and on any interest earned. R r 100.