For example, if an individual borrows $15,000 over a four-year period with an annual interest rate of 5%, the simple interest would only be calculated on the $15,000, as opposed to compound ...

Calculations and Example of Compound Return For example, suppose you started with an initial investment of $1,000. If you multiply 1,000 by 1.1 five times, that is, $1,000 x (1.1) 5 , you will end ...