CE: Simple Interest同Compound Interest

The main difference is on how to calculate interet.
For simple interest, the interest is added to the principle at the end of the time to get the final amount.
For compound interest, the interest collected at each interest receiving period is added to the principle to become the new principle for next interest period.

Since the interests in compound interest are added to the principle become part of new principle, the interest obtained will always be greater than the interest received under the same interest rate and time period than that for the simple interest.

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Simple interest同Compound interest都只係用所謂利率來計算利息額的不同慣例而已．一般而言，在Simple interest同Compound interest的情況下分別用相同利率計算時，Simple interest的利息金額會少過Compound interest．其實，不管Simple interest同Compound interest的慣例如何，最重要的是利息金額有多少．