Simple and Compound Interest

Simple and Compound Interest

Introduction

The concept of interest has to do with the price of money. If someone borrows money than he has to pay some interest on the money borrowed. And if someone deposits money in a bank, the bank must pay some interest on that money. Given an amount of money and terms for the return or use, the interest rate indicates what percentage of that money would be raised as a benefit, or in the case of a loan, what percentage of that money would have to pay. It is usual to apply the interest on ...