Interest

Question 1

Simple Interest

Answer 1

Interest that is paid only on the original principle or on the amount originally borrowed.
If you put $100 dollars in savings, and there is a rate of 6% simple interest, at the end of one year you will have $106.
$100 deposit + 6% interest = $106

Question 2

Compound Interest

Answer 2

Interest paid on the principle and the previously earned interest.
Interest can be compounded several ways: annually, every year, semiannually, every six months, quarterly, every three months, monthly, daily
The more often your money is compounded the more interest your money earns.

Question 3

Principle

Answer 3

The amount of a debt or investment.
The face value of a stock or bond.
Starting amount