Which will will pay more interest, a simple interest rate of 3% or a compound interest rate of 3% rate?

1 Answer
sankarankalyanam
Jul 7, 2018

"Sinple Interest " S I = (P N R ) / 100

"Compound Interest " C I = P (1 + (R/100))^N - P

For 1 year, simple interest and compound interest pay the same for annual interest.

From second year onwards, compound interest will pay more.

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