SME Toolkit Logo
Partner Logo
Home  > Introduction to Interest. Simple vs. Compound Interest.
 Share  Print Version  Email

Introduction to Interest. Simple vs. Compound Interest.

Provided by Khan Academy

Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). These two videos will explain to you what interest is and help you understand the difference between simple and compound interest. 

Introduction to interest: What interest is. Simple versus compound interest.

Simple interest is interest paid only on principal, while compound interest is paid both on the principal and on the interest previously earned. Proceed to the next video to continue learning about simple and compound interest. 

Interest (part 2): More on simple and compound interest 

Copyright © 2016 Khan Academy. All Rights Reserved.

 Share  Print Version  Email
Comments & Ratings (1) Overall  
  • Currently 4.0/5 Stars.
If you are a human, do not fill in this field.
Click stars to rate.
   Comments are truncated at 1000 characters
What Others Are Saying
Sort by
  • Currently 4.0/5 Stars.
Maleek Johnson  |  July 25, 2015
I am Mr. Maleek Johnson, a private money lender. I give out loans with an interest rate of 3% per annual and within the amount of 1,000.00 to 10,000,000.00 as the loan offer. 100% Project Funding with secured and unsecured loans are available. We are guaranteed in giving out financial services to our numerous clients all over the world. With our flexible lending packages, loans can be processed and funds transferred to the borrower within the shortest time possible. We operate under clear and understandable terms and we offer loans of all kinds to interested clients, firms, companies, and all kinds of business organizations, private individuals and real estate investors. Just complete the form below and get back to us as we expect your swift and immediate response. EMAIL: