The author and editors take ultimate responsibility for the content. The difference between simple interest and compound interest is the way the interest accumulates. Simple interest accumulates ...

Below, CNBC Select breaks down the difference between simple and compound interest, how the latter works and ways you can benefit from understanding compound interest. Simple interest is ...

Use the simple interest formula to calculate the interest gained on \(£2500\) over \(4\) years at a rate of \(6\%\) per annum. Compound interest is interest that is calculated on the principal ...

Simple interest is often used in a loan or bond context wherein the interest is the same every period, and there is no compounding. Compound interest is used in investment and savings contexts.