What’s the difference between simple interest and compounding interest? Say you invest Php10,000 today at a 10% interest rate. With simple interest, you will earn Php1,000 every year (10,000 x 10%) as long as your money is kept invested. And in 5 years, your money plus interest will total Php15,000. That’s because, with simple interest,…
Simple Interest vs. Compounding Interest
What’s the difference between simple interest and compounding interest? Say you invest Php10,000 today at a 10% interest rate. With simple interest, you will earn Php1,000 every year (10,000 x 10%) as long as your money is kept invested. And in 5 years, your money plus interest will total Php15,000. That’s because, with simple interest,…
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