A sinking fund makes money grow over time by adding interest to previous interest earned. ... The rate of return matters when it comes to compound interest.
A sinking fund makes money grow over time by adding interest to previous interest earned.
Compound interest
compound
compound... yes it is compound interest.
Compound
Compound interest increases the amount earned by adding credited interest to the principal, and interest will then be earned on that money as well. The longer the principal and interest remain in the account, the greater the earnings they will accrue.
Compound
comopound
compounding interest.... i think
With compound interest, in the second and subsequent periods, you are earning interest on the interest earned in previous periods. If you withdraw the interest earned at the end of every period, the two schemes will earn the same amount.
It is interest on simply the original capital. After the first period, compound interest involves interest on the interest earned in previous periods and soit not simple.
Times Interest Earned = Operating Income/ Interest Expense.
Compound Interest