Simple interest % = (Interest amount / Principal) * 100
If Principal amount (A), Simple interest rate (R), Time duration (T years), then: A = P + PTR/100
In the case of simple interest, the principal is unchanged. In the case of Compound Interest, the interest accrued during the year is added to the principal, which then forms the principal for the next year.
If Principal amount (A), Compound interest rate (R), Time duration (T years), then: A = P(1 + R/100)T
