The formula for compound interest is more complex than simple interest: P(1 +r/n)nt, where: P = the initial principal balance; r = the interest rate; n = the number of times interest is applied; t = ...

Q: What is the difference between simple interest and compound interest? My mortgage loan merely states I have to pay 8 percent interest. My loan is from a doctor’s retirement fund, and I ...

Simple Interest vs. Compound Interest: ... Then, multiply that number by how long you'll leave the money in the account or the loan time (term of the loan in years). Simple Interest Example.

Simple vs. Compound Interest: An Overview . ... For example, if you take out a car loan with simple interest, it will generally cost less over time than a loan with compound interest.

There are two different ways of calculating interest -- simple and compound. Here's how to calculate each, as well as the key differences and similarities between the two. Simple interest is well ...