Question 1

What is the difference between simple and compound interest?

Accepted Answer

Simple interest grows linearly on principal only; compound interest earns interest on interest at each compounding period.

Question 2

How do I compute interest earned?

Accepted Answer

Simple: I = P*r*t. Compound: A = P*(1 + r/n)^(n*t) - P.

Question 3

What compounding frequencies are supported?

Accepted Answer

Common options: daily, monthly, quarterly, annually, and continuous.

Question 4

How do fees affect returns?

Accepted Answer

Model as a lower net rate or subtract periodic fees from the balance before compounding.

Question 5

Are results guaranteed?

Accepted Answer

No—rates change and markets vary. Use this for planning, not predictions.

Interest Calculator