It all comes down to one elementary mathematical principle: compound interest. Compound interest occurs when the interest that accrues to an amount of money in turn accrues interest itself.

Simple interest is more favorable for borrowers due to its non-compounding nature. Compound interest benefits investors by allowing earnings to also generate returns. Invest in avenues like stocks ...

“Compound interest is the eighth wonder of the world ... added interest during the next compounding period. Looking at our graphic you can see that £100 turns into £105 at the end of year ...