How Does Simple & Compound Interest Affect Investment?

Answer Many factors can affect an investment's results -- the initial amount of the investment principal, the length of the investment time and the stated interest rate for the investment. An investment's... Read More »

Top Q&A For: How Does Simple & Compound Interest Affect Inve...

Does a simple interest mortgage charge interest?

A simple interest mortgage does charge interest, but it is calculated differently that on a traditional mortgage. Simple interest is based on the balance of the loan each day, as opposed to each mo... Read More »

Interest Coverage Ratio - can you offset interest income with interest expense?

How is compound interest calculated?

Compound interest refers to the amount of interest that a loan accumulates when an account has interest added to it and that interest accrues interest. Simple interest calculations do not take into... Read More »

How to Compound Interest on a Loan?

When you borrow money, you end up paying back more than you borrowed because of interest. Interest is a percentage of the amount (the principal) that you borrowed. Lenders who compound the interest... Read More »