What Is Better Simple Or Compound Interest
Compound Interest Schedule. The formula for calculating compound interest is A P 1 rn nt. Compound Interest Doodle Notes Doodle Notes Math Methods Math Doodles Compared to simple interest the calculation of compound interest is difficult as it involves different periods of compounding. What is better simple or compound interest . Some accounts are compounded yearly some quarterly some monthly and some weekly or even daily. Sania made an investment of Rs 50000 with an annual interest. This means that you earn a percentage on top of both what you put in as well as the interest you earn on that amount. Since it allows the fund to grow quickly. After three years you have made a return of 15763 which mean you have 115763 in total 763 more than if your savings had earned simple interest. Compound interest is useful when it comes to investing. While an account earning compound interest grows faster over time than one that is paid simple interest not all compound interest
