Simple versus Compound Interest

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Compound interest compared to simple interest at various rates, terms, and compounding periods.

Contributed by: Jason Cawley (March 2011)
Open content licensed under CC BY-NC-SA


Snapshots


Details

Screenshot 1: Frequent compounding at a high interest rate.

Screenshot 2: Less frequent compounding at the same rate reaches a lower total.

Screenshot 3: Less frequent compounding at the same rate reaches a lower total.

Screenshot 4: Compound interest is vastly higher than simple after a long period.

Screenshot 5: Monthly vs. annual compounding raises the previous total by 20%.



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