Compound interest

 

All interest refers to a percentage charged or earned from a lump sum. Compounded interest is a type of interest that adds the original principal to the original amount borrowed or invested, and the accumulated interest from the previous periods.

Compounded interest can be calculated in many different ways. If you are unsure how to calculate compound interest, you will be able to gain valuable insight into the best ways to save money and still keep realistic expectations. You can do calculations by looking at "what-if" scenarios that use different numbers. This will allow you to see how you could save more money or earn interest over the years.

 

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