Explain the difference between simple interest and compound interest.

Simple interest:

 Simple interest is simple. Each year, the interest is calculated as a percentage of the principal, as follows: Interest= (principal) x (rate) x (time).

Compound interest:

Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods.

Simple interest is simple. Each year, the interest is calculated as a percentage of the principal, as follows: Interest= (principal) x (rate) x (time).

Step-by-step explanation:

-2 is the right