Simple and Compound Interest

First of all, let us first define some jargons.

Principal- is the amount of money that is originally

borrowed from an individual or a financial institution

Interest- is the cost of borrowing money, where the

borrower pays a fee to the lender for using the latter's
money. The interest, typically expressed as a percentage,
can be either simple or compounded.

Maturity Value-

Simple Interest is charged only on the loan amount

called the principal.