What is the Difference Between Simple Interest and Compound Interest?

Objective:

• Simple interest and compound interest explained 

Environment:

• Clio Web App

Additional Information:

n/a

Answer:

• Simple interest is calculated based on the principal amount (the initial amount charged to the client). 
• Simple Interest = (Principle) x (Interest Rates) x (Time) 
• Compound interest is calculated on the principle plus any interest accrued on the Bill.   
• Compound Interest = Principal x (1+Interest)Number of Periods - Principal