The most powerful force in the world of investing is compound interest. In fact, Albert Einstein once called compound interest the “eighth wonder of the world!” But what is compound interest? Why was ...

Discover the magic of compounding and why it's important for increasing wealth Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of experience as a business ...

Greg DePersio has 13+ years of professional experience in sales and SEO and 3+ years as a writer and editor. Simple interest is calculated only on the principal balance of the loan each period.

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 ...