Simple interest is based on the principal amount of a loan, while compound interest is based on the principal plus ...

Learn about our editorial policies Interest is defined as the cost of borrowing money. It can also be the rate paid for money on deposit, as in the case of a certificate of deposit. Interest can ...

The original amount of money borrowed or loaned is called the ‘principal’. The ‘interest rate’ is the % of the principal that is added on over the course of one year as interest.

Rising interest rates are changing the math for pension holders. If interest rates continue to increase, lump sums may not be worth as much as they are today. Now is a great time to evaluate your ...