Question: What is the major difference between compound and simple interest? a . Simple interest accrues on the accumulated interest of previous periods.O b . Simple

What is the major difference between compound and simple interest?

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Simple interest accrues on the accumulated interest of previous periods.O b

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Simple interest is calculated on the principal amount of a loan while compound interest is computed on the principal amount and on the accumatesinterest of previous periods. c

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Simple interest is more complex in calculations; hence, people do not prefer it

.

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Simple interest is referred as the interest on interest, while compound interest is calculated on the principal of a loan.

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