Explain the difference between simple interest and compound interest. Provide an example of when you would use simple interest and compound interest concepts in real life.
Please include the name of the person or question to which you are replying in the subject line. For example, “Tom’s response to Susan’s comment.” ALSO REPLY TO ANOTHER STUDENT’S COMMENT BELOW ⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️
While it might not seem significant, the differences between simple and compound interest are huge. The concept of simple interest is one that anybody with a car payment or basic loan should be familiar with. When a loan is approved, it often comes with a simple interest rate that basically says you will repay the entire loan plus whatever percent interest that is. If you take out a loan for $100,000 with 5% interest, your final total will be $105,000 when you pay it off. Compound interest is found in credit card balances and is likely the main reason people tend to become overwhelmed with their balances. Depending on your account balance and the APR of your credit card, each month you will be charged interest. The following month, your balance and any accumulated interest is then assessed interest again. What tends to happen when you only pay the minimum amount is that the majority of your payment goes to interest rather than the balance. The result is a balance that seems to never go down despite paying your minimum balance. While it’s important to establish credit for your financial future, everyone must be careful not to get overzealous with spending and ideally pay off your entire balance every month to avoid interest.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more