While some might argue that compound interest is the most powerful force in the universe, it is undoubtedly one of the most powerful financial forces on Earth. Understanding how compound interest ...

Annual percentage yield (APY) is the effective annual rate of return on an investment. Learn how it accounts for compounding interest and how it differs from APR.

In the real world, simple interest is rarely used. When you deposit money into an interest-bearing account, or take out a line of credit, the interest that accumulates is added to the principal, and ...

When it comes to calculating interest, there are two basic choices -- simple and compound. Simple interest simply means a set percentage of the principal every year, and is rarely used in practice. On ...

There are two main types of interest, compound interest and simple interest. Compound interest factors in interest earned in the total interest calculation. Therefore, compound interest totals account ...

What these two processes share is baked into the math of each. In fact, in that respect, they're nearly identical. They both involve some stuff (atoms or money) that is either growing or shrinking.