What is Simple Interest and How to Calculate it?
Often we come across the term ‘interest rate’ when we have to borrow funds or invest money somewhere. An interest rate is the cost of financing that we pay when we take money on a loan and we get it when we have lent money or made the investment. There are two types of interest: […]
What is Compound Interest and How to Calculate It?
Compound interest involves earning interest not only on the initial amount of money or principal but also on any previously accumulated interest. This means that as time goes on, the interest earned on an investment or loan can increase exponentially. Compound interest is typically calculated and added to the principal at regular intervals, such as […]