math
posted by Jp .
In simple words, what are the differences of simple interest, compound interest and annuity?

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.basicmathematics.com/simplevscompoundinterest.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 
thanks ms. sue:)

You're welcome, Jp.
Respond to this Question
Similar Questions

Math  Pre Algebra
Simple and Compound Interest Find the simple interest. principal= $870 interest rate= 6% time= 9 months Please help me I need the answer for tommorow. 
Visual Basic 2008 Programming
Help! I'm not sure how to start or how calculate. This is the project. Using For Next Loops.  When $1000 is deposited at 5 percent simple interest, the amount grows by $50 each year. When money is invented at 5 percent compound interest, … 
computer science
When $1000 is deposit at 5% simple interest, the amount grows by $50 each year. When money is invested at 5% compound interest, then the amount at the end of each year is 1.05 times the amount at the beginning of the year. Write a … 
Social Studies
I was wondering if I could check my answers with someone. I'm a bit confused with interest. I put stars next to the answers I chose. Thank you. An interest rate is a special type of (1 point) loan. **price. bank. service. 2. How does … 
Algebra
Maybe that was to confusing...we have a data sheet to fill out  2 questions with simple interest and 2 with compound interest. I just need the simple interest help: Prob. #1 Find the total amount if you deposit $500. at a rate of … 
SS
Rohan has 100 dollars that he wants to save in a bank. Bank A offers two types of savings accounts. One has a 5% simple interest rate and the other has a 4.8% compound interest rate. Bank B also offers two types of savings accounts. … 
Dont I need more info for this Math problem??
You borrow $2,000 at a rate of 3% for a period of 4 years. How much will you repay at the end of 4 years? 
social studies
1)An interest rate is a special type of? a. loan b. price c. bank d. service 2) How does a compound interest rate differ from a simple interest rate? 
Social studies
How die a compound interest rate differ from a simple interest rate? 
Social Studies
An interest rate is a special type of (1 point) loan. **price. bank. service. 2. How does a compound interest rate differ from a simple interest rate?