Learn what the stated annual interest rate is and how to calculate it without compounding, plus how it compares to the effective annual rate.

Simple interest is paid only on the principal, e.g., a $10,000 investment at 5% yields $500 annually. Compound interest accumulates on both principal and past interest, increasing total returns over ...

Learn how add-on interest increases loan costs compared to simple interest. Discover the formula, examples, and its implications for borrowers.