Augmented Reality and Virtual Reality may look related, but they both are entirely different concepts.
Virtual reality will take us to the virtual world. By putting on a VR headset, you can even find yourself transposed to the top of Mount Everest. One can literally feel the movement when you ride a virtual roller coaster. These computer-generated environments make you fully immerse in the virtual world.
Augmented Reality will keep you where you are and superimposes the technology in the form of sounds, text, and images. It gives an interactive experience of the real world environment across visual, auditory, olfactory sensors perceived as interwoven with the physical world. It provides an interactive experience of reality with computer-mediated reality.
“I’m excited about Augmented Reality because unlike Virtual Reality which closes the world out, AR allows individuals to be present in the world but hopefully allows an improvement on what’s happening presently... That has resonance,” says Tim Cook, CEO, Apple.
If you are still wondering what is the real difference between them, it is explained better here -- "With virtual reality, you can swim with sharks. And with augmented reality, you can watch a shark pop out of your business card".