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simple interest versus compound interest
Weegy: Simple Interest = p * i * n where: p = principal (original amount borrowed or loaned) i = interest rate for one period n = number of periods example: You borrow $10,000 for 3 years at 5% simple annual interest. interest = p * i * n = [ 10,000 * .05 * 3 = 1,500 ] (More)
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Expert Answered
Updated 7/6/2012 7:01:26 PM
1 Answer/Comment
Compounding interest is "interest on interest." It is a method of calculating interest where the interest is added to the original principle. This new value is now our principle for the next time period. In this method the interest earned in past terms can earn interest in future terms. Simple interest is a type of interest that is payed only on the original amount deposited and not on past interest payed.
Added 7/6/2012 7:01:26 PM
Rated good by brenda143
The rate used in the table for calculating compound interest is found by
Weegy: Sir/Madam, The rate used in the table for calculating compound interest is found by "Annnual rate devided by number of times compounded per year". User: A table factor of .7312 from a present value table of $1 means that a certain rate of interest for a certain period of time it will equal Weegy: $1 (More)
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Asked 7/3/2012 2:59:52 AM
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