Simple interest works in your favor when you borrow money, while compound interest is better for you as an investor.

Interest is the monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

The $7 gained in year one is simple interest. After this initial simple interest, that’s when the interest starts earning interest, which is what is defined as “ compound interest.” ...

Albert Einstein called compound interest the "8th wonder." Learn how this simple wealth-building tool can double your money - ...

The $7 gained in year one is simple interest. After this initial simple interest, that’s when the interest starts earning interest which is what is defined as “ compound interest.” ...