What is the difference between simple interest and compound interest?

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Simple interest is calculated on the initial principal only, while compound interest is calculated on the initial principal and accumulated interest

Simple interest is calculated on the accumulated interest only, while compound interest is calculated on the initial principal only

There is no difference between simple and compound interest

Simple interest is always higher than compound interest

Simple interest is calculated as a percentage of the original principal amount, without considering any accrued interest.

Compound interest takes into account both the original principal and any interest that has accumulated over time.