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What is the difference between simple interest and compound interest is one better than the other why or why not?
Wiki User
∙ 10y ago
With compound interest, after the first period you interest is calculated, not only on the original amount but also on the amount of interest from earlier periods.
As to "better" or not, the answer depends on whether you are earning it on savings or paying it on borrowing!
Wiki User
∙ 10y ago
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What is better daily or monthly compound interest?
daily
Is simple interest at 4.25 percent better than compound interest at 4.25 percent?
Simple interest is the interest you earn on your principal, IE the amount of your original investment. For example, you put 1000 dollars in a saving account paying 3% per annum. At the end of the year you will have earned 30 dollars on that one thousand dollars. If you leave the principal and interest in the account for another year you will earn another 30.00 on your original 1000 dollars plus .90 interest. on the first 30.00 dollars interest. This gives you a total of 1060.90 in your second year. In each succeeding year you will earn interest on your interest plus interest on your original principal which, if left alone will add up to a substantial some given the power of compound interest. One caveat, compound interest is a double edged sword. If you have a loan and fail to make your monthly payments on time, compound interest will gut you financially.
Lance is thinking about investing 450 at 3.5 percent annual interest or 400 at 4.5 percent annual interest What is the difference in the amount of interest Lance could earn?
First choice 15.75, second 18.00, so better by 2.25 a year
What is the difference between 4140 4340 material?
4340 has a small percentage of chrome in it for a better finish.
What is relationship between Maths and Geography?
The difference of maths and geography is maths is more better than geography
Which type of interest is better to have applying for a loan?
compound
What is better daily or monthly compound interest?
daily
Which type of interest is better to have when applying for a loan?
compound
What is the difference between the materials Co and CO in chemistry?
Co is an element- Cobalt. CO is a compound of two elements- Carbon and Oxygen. Better known as Carbon Monoxide.
Interest on maturity is better or monthly interest?
If you need a monthly income then obviously a monthly income is better. If the monthly interest is not withdrawn then it makes no difference because the annual interest rate is usually equal to the compounded monthly rate.
Is the straight-line amortization or effective interest rate method better?
This method is preferred over the straight-line method of amortizing bond discount or bond premium. Amortization of a bond discount or premium is the difference between the interest expense and the nominal interest payment. The amortization entry is: Interest Expense (effective interest rate x carrying value) Cash (nominal interest rate x face value) Bond Discount (for the difference)
What is the difference between better and greater?
better is goodx2 greater is betterx2
What is the difference between television signals now and then?
now they are better now they are better
What is difference between stdioh and stdioh?
The latter is better.
What is the difference between emerald and diamond?
Emerald's better.
What is the difference between xfinity and Netflix?
xfiity is better that is it
What is the time difference between Wellington and Tokyo?
the difference between Tokyo and wellington is that Tokyo has a bigger population and has a better government
