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Simple Interest vs. Compound Interest: An Overview Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan. Interest, usually expressed as a percentage, can be simple or compound. Simple interest is based on the principal amount of a loan or deposit. On the other hand, compound […]
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Simple Interest vs. Compound Interest: An Overview When analyzing the terms of a loan, it is important to consider more than the interest rate. Two loans can have the same principal amounts, interest rates, and repayment terms, but significant differences in the amount of interest you pay, especially if one of the loans uses simple […]
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Mutual funds are popular vehicles that pool money raised from investors. This capital is then invested in securities and assets – stocks, bonds, cash, money market instruments and others – depending on the profile of the fund, whether it is a small capitalization fund, a international fund, a government bond fund, etc. Investors, in turn, […]
When it comes to investing, compound interest is truly the most powerful force in the universe. Remarkable in both its simplicity and its power, compound interest is the concept of reinvesting, along with the initial capital, the interest earned on your investment. As a result, you earn interest on top of interest, then more on […]