Knowing your loan's interest rate matters, as does learning how that rate is calculated. Interest is either simple or compound. If you have a simple interest loan, interest is based only on the ...

Compounding is the quiet force that turns steady saving into exponential wealth creation. The Rule of 72 makes this concept ...

Math is awesome. Wait!! Don’t click out of here to go read an article about Beyoncé and her twins! Stay with me so I can tell you why math is awesome. Because if you have a basic understanding of math ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Suzanne is a content marketer, writer, and ...

The Rule of 72 has likely made its way to many table conversations about money. It’s a simple, almost magical calculation that tells you how long it takes to double your investment. And you don’t need ...

Simple interest is paid only on the principal, e.g., a $10,000 investment at 5% yields $500 annually. Compound interest accumulates on both principal and past interest, increasing total returns over ...