Online Calculators: 1. Compound Interest and the Future Investment Value. 2. Flat Rate Simple Interest
Interest = The amount of money that someone had to pay for the period he used someone else's money
Interest, two online calculators available. The calculators are free, and the calculations that are performed are followed by step-by-step explanations:
1. Compound Interest. Interest on interest. The interest is calculated not only at the very end of the period, but more often, periodically (daily, weekly, monthly), when it is also added to the initial amount that earns interest, the principal. The compound interest is thus calculated not only from the principal but also from the interest earned up to that point.
2. Simple (Flat Rate) Interest. Interest is calculated only at the very end of the term of the loan and is calculated strictly from the initial amount deposited or borrowed. The simple interest earns a slightly lower interest than the compound interest.