Compound interest is a financial term used to describe the process where the interest earned on a principal investment over a set period of time is added to the principal amount. The interest payable for the following pe... More »

Many financial and government websites have compound interest calculators, such as Bankrate.com and Investor.gov. In addition, some mathematics-oriented websites also have compound interest calculators to illustrate part... More »

One formula for calculating yearly compound interest is M=P(1+i)n. "M" represents the final amount with the principal and interest combined, "P" represents the principal amount, "i" represents the interest rate, and "n" ... More »

A grace period is a period of time after a person makes credit card purchases and before the card issuer charges interest on the amount due. Not all credit card providers offer a grace period, but the typical grace perio... More »

Simple interest expense is calculated using the formula e = (principal)(rate)(time), where "e" is the interest expense, "p" is the principal amount, "r" represents the interest rate and ''t" is the time elapsed (in years... More »

To calculate interest, multiply the periodic interest rate by the principle amount. For example, if you borrowed $1000 with an interest rate of 10 percent, in a year your interest paid is $100. More »

The difference between simple interest and compound interest is that simple interest builds only on the principal amount, while compound interest builds on both the principal and previously earned interest. Because of th... More »