At simple interest

At compound interest

For 1^st year P = 100

I = (100 × 10 × 1)/100

= 10 (S.I.)

amount = 100 + 10

= 110

For 1^st year P = 100

I = (100 × 10 × 1)/100

= 10 (C.I.)

amount = 100 + 10

= 110

For 1^st year Compound interest is equal to the simple interest

For 2^nd year P = 100

I = (100 × 10 × 1)/100

= 10 (S.I.)

amount = 110 + 10

= 120

For 2^nd year P = 110

I = (110 × 10 × 1)/100

= 11(S.I.)

amount = 100 + 11

= 121

For 2^nd year Compound interest is more than the simple interest

For 3^rd year P = 100

I = (100 × 10 × 1)/100

= 10 (S.I.)

amount = 120 + 10

= 130

For 3^rd year P = 121

I = (121 × 10 × 1)/100

= 12.1 (S.I.)

amount = 121 + 12.1

= 133.1

Every year, compound interest increases, but the simple interest remains unchanged