Im trying to figure out what are the two kinds of interst.
2007-02-23 04:44:26 · 4 answers · asked by pinay_baby07 1 in Business & Finance ➔ Investing
Simple and compound interest. Simple is better if you're the borrower. Compound is better if you're the lender.
2007-02-23 04:49:53 · answer #1 · answered by 4XTrader 5 · 0⤊ 0⤋
Simple Interest:
Accumulated value = Principal*(1+interest rate*time)
Compound Interest:
Accumulated value = Principal*(1+interest rate)^time
For time<1, simple interest is better for the investor. For time >1, compound interest is better. For time = 1, they are equivalent.
2007-02-23 12:50:27 · answer #2 · answered by Icey12 2 · 0⤊ 0⤋
The interest you earn and the interest you owe. The kind you earn is better than the kind you owe.
2007-02-23 13:10:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
simple and compound interest
Simple if you borrow mony
Compound if you loan money
2007-02-23 12:52:03 · answer #4 · answered by Hope I can hel[ 3 · 0⤊ 0⤋