Simple interest is the interest that is calculated on the initial principal amount. Conversely, compound interest is the interest calculated that is calculated on the initial principal, plus the accumulated interest for all previous periods. Thus, with simple interest, the amount of interest for each period is the same, while for compound interest, the interest changes for each period.
To prepare for this recipe, do the following:
- Open Power BI Desktop.
- Use a Bank query to create a table called R05_Table.