Intro

SI
Simple interest is a method to calculate the amount of interest charged on a sum at a given
rate and for a given period of time. In simple interest, the principal amount is always the
same, unlike compound interest where we add the interest to the principal to find the
principal for the new principal for the next year.

CI

Compound interest is an interest calculated on the principal and the existing interest
together over a given time period. The interest accumulated on a principal over a period of
time is also added to the principal and becomes the new principal amount for the next time
period
Def
principal
The principal is the amount that was initially borrowed from the bank or invested. The
principal is denoted by P.

Time period

The length of time it will take to pay off a loan. The shortest period between payments or
interest calculations.
Rate of interest
Interest rate is the amount charged over and above the principal amount by the lender from
the borrower
Amount (A) is the total money paid back at the end of the time period for which it was
borrowed.
Diff
Simple interest is calculated on the principal, or original, amount of a loan. Compound
interest is calculated on the principal amount and the accumulated interest of previous
periods
Pros
It amplifies your returns
You can start off small
Cons
It is only advantageous over the long-term
It can lead to significant financial burden

Bank FD Names For General Citizens (p.a.) For Senior Citizens (p.a)
 State Bank of India FD 3.00% to 7.10% 3.50% to 7.60%

HDFC Bank FD 3.00% to 7.10% 3.50% to 7.75%

ICICI Bank FD 3.00% to 7.10% 3.50% to 7.60%

IDBI Bank FD 3.00% to 6.75% 3.50% to 7.25%

Kotak Mahindra Bank FD 2.75% to 7.20% 3.25% to 7.70%

RBL Bank FD 3.50% to 7.80% 4.00% to 8.30%

KVB Bank FD 4.00% to 7.50% 5.90% to 8.00%

Punjab National Bank FD 3.50% to 7.25% 4.00% to 7.75%

Canara Bank FD 4.00% to 7.25% 4.00% to 7.75%

Axis Bank FD 3.50% to 7.10% 3.50% to 7.85%

VIII. Activity 1: Purchase a car

Do in book

IX.

Savings accounts, checking accounts and certificates of deposit

(CDs).
accounts and investment accounts
Student loans, mortgages and other personal loans
Credit cards
X. Conclusion

Compound interest causes your wealth to grow faster. It makes a sum of money grow at a faster rate
than simple interest because you will earn returns on the money you invest, as well as on returns at
the end of every compounding period.

XII.

https://www.centralbank.net/

wikipedia.org
cuemath.com