What is the difference between simple interest and compound interest?

A. Simple interest is calculated once a daily, and the interest is sent to you as a cashier's check. Compound interest is calculated only yearly.
B. Simple interest is calculated once a year, based on the amount balance on a specific day. Compound interest is calculated daily, monthly, quarterly, semi-annually, or annually.
C. Simple interest is calculated once a year, based on the amount balance on a specific day. Compound interest is calculated semi-annually, and the interest is mailed to you as a teller's check.
D. Simple interest is calculated once a year, and the interest is sent to you as a cashier's check. Compound interest is calculated daily, monthly, quarterly, semi-annually, or annually.


Answer: B

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