So what is difference between compound and simple interest?

- With simple interest, you do not apply interest to your accrued earnings
- It is like "spending" each penny of interest everytime it was placed in your bank account

Present Value (Principal Amount): | $ |

Annual Interest Rate | |

How many years? | |

Based on Principal Amount of
$1000, at an interest rate of 7.5%, over 10 year(s):
## Total Value = $1750## Total Interest = $750 |