Simple Interest, Compount Interest, Saving & What I learned from Ms.Austin

Simple Interest is interest payed on the principle alone.

 

Formula:

Compound interest is when interest is added to the principal of a deposit or loan.

 

Formula:

 



Savings: the money one has saved, esp. through a bank or official scheme

What I learned from Ms. Austin:
I learned that if I put my money in savings and leave it there for a long time, over the years I will get money back just for keeping it there and if I have compound interest, the interest will keep increasing by the new interest amount.