What is difference between Augmented Reality and Virtual Reality?

I was always confused about AR and VR and what are their differences. Here I found good explanation.

Now I understand that Augmented reality when virtual objects are demonstrated in real life.
Virtual reality is virtual objects are demonstrateed in virtual environment.

Cite: Augmented Reality blends computer generated content and the reality; in Virtual Reality a complete new world is invented

Augmented reality example:

Virtual reality example: