Add Yahoo as a preferred source to see more of our stories on Google. Knowing your loan's interest rate matters, as does learning how that rate is calculated. Interest is either simple or compound. If ...

Lenders charge interest in two main ways — simple or on an amortization schedule. In an amortizing loan, the part of your payment that goes toward interest decreases over time and the part that goes ...

A simple interest loan doesn’t charge you additional interest on your accrued interest. In other words, the only interest you pay is on the outstanding principal balance of your loan. Auto loans and ...

On the surface, an interest rate is just a number. How that number applies to debt or equity opens up a world of possibilities. The first consideration is always whether it’s simple interest vs.

Simple interest is the interest applied only to the original amount of money deposited or borrowed. Calculating simple interest requires knowing your principal amount, annual interest rate, and time ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Xavier Lorenzo / GettyImages If you're looking for a loan, finding the most affordable ...

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 ...