If the rate is 1/18 % per year, the money will earn 201.48
21.28
21.28
75$
7.5 x 2.5 ie 18.75
Two and a half percent of 750 ie 2.5 x 7.5 which is 18.75
21.28
21.28
75$
54
(5.1 x 4.25)/4 = 5.42
7.5 x 2.5 ie 18.75
2.88% means 2.88/100 = 0.0288 times principal 0.0288 * 575 = 16.56 * 3 = $49.68 simple interest
Two and a half percent of 750 ie 2.5 x 7.5 which is 18.75
simple interst is when you earn interest from your principal but compound interest is when you earn interest from your principal as well as from your previous interest
In simple interest, 50,000 would earn 1,500 in one year.
You earn more money using compound interest than simple interest because compound interest calculates interest on both the initial amount and the accumulated interest, leading to faster growth of your money over time.
With compound interest, in the second and subsequent periods, you are earning interest on the interest earned in previous periods. If you withdraw the interest earned at the end of every period, the two schemes will earn the same amount.