Homework Help: math

Posted by Jp on Saturday, January 5, 2013 at 5:27pm.

In simple words, what are the differences of simple interest, compound interest and annuity?

math - Ms. Sue, Saturday, January 5, 2013 at 5:38pm
Simple interest pays the same rate every year on only the initial amount invested.

Compound interest pays on the accumulated interest as well as the original investment.

http://www.basic-mathematics.com/simple-vs-compound-interest.html

An annuity is designed to pay the holder a fixed amount of money in regular payments.

http://www.investopedia.com/terms/a/annuity.asp#axzz2H8vy1uYv
math - Jp, Saturday, January 5, 2013 at 5:44pm
thanks ms. sue:-)
math - Ms. Sue, Saturday, January 5, 2013 at 5:47pm
You're welcome, Jp.

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