Max's answer to Josephine Aw's Secondary 3 E Maths question.

Ask ManyTutors
done {{ upvoteCount }} Upvotes
clear {{ downvoteCount * -1 }} Downvotes
Max
Max's answer
33 answers (A Helpful Person)
Simple interest means interest one is required to pay, based on what is purchased and remaining after down payment.

In contrast, compound interest means there is additional interest charged per annum due to "interest on interest"

Hope this helps!