Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Understanding the basics of this powerful mathematical tool can ...

Greg DePersio has 13+ years of professional experience in sales and SEO and 3+ years as a writer and editor. Simple interest is calculated only on the principal balance of the loan each period.

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 ...

When you put money into a savings account, the bank will use your money, for example by lending it to other people. They will pay you a certain amount for allowing this. The money they pay you is ...

It was Albert Einstein who called compound interest the ‘eighth wonder of the world,' saying that ‘he who understands it, earns it. He who doesn't, pays it.' In the investment world, compound interest ...

Compound interest is the money your bank pays you on your balance — known as interest — plus the money that interest earns over time. Many, or all, of the products featured on this page are from our ...