On the surface, an interest rate is just a number. How that number applies to debt or equity opens up a world of possibilities. The first consideration is always whether it’s simple interest vs.

Discover what interest-on-interest means, how it's calculated, and its impact in bond investing. Learn the difference between ...

Capital at risk. The value of your investments can go up and down, and you may get back less than you invest. Compounding is a process where interest is credited, not only to the original ‘principal’ ...

Simple interest is paid only on the principal, e.g., a $10,000 investment at 5% yields $500 annually. Compound interest accumulates on both principal and past interest, increasing total returns over ...

Simple interest calculates earnings or payments based solely on the initial principal, while compound interest grows by calculating interest on both the principal and the accumulated interest over ...

Compound interest is the interest earned on money that has already earned interest. Compound interest helps your money grow faster, with no additional investment on your part. Many or all of the ...

A simple interest loan calculates the interest based only on the principal you owe. It stands in contrast to a compound interest loan, which calculates interest based on principal and any outstanding ...

If you want to get the most return on money you save or invest, you want compound interest. The two types of interest are simple and compound. Simple interest is paid only on the money you save or ...