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 »

What is the difference between interest rate& APR?

The interest rate on the loan determines the monthly interest charged to the borrower. The APR, or annual percentage rate, is the numerical representation of the total cost to the borrower for the ... Read More »

What is the difference between apr&interest rate on cds?

Understanding the difference between banking terms like "interest rate," "APR," and "APY" can be confusing. But having a basic understanding is essential for customers to get the best return on the... Read More »

What is the difference between rate and yield on interest?

The interest rate on a debt instrument, such as a U.S. Savings Bond or corporate bond, is the annual interest to be paid on the bond until maturity. This is usually imprinted on the face of the bon... Read More »