Explain meaning of simple interest and compound interest in savings

Savings and Investments

3.3

Savings and Investments

We will learn about the meaning of savings and investments.

SAVINGS	INVESTMENT
Excess money deposited in the bank, bag or safe.	An alternative way to get a return in the future.
Three types of savings: - Savings Account - Current Account - Fixed Deposit Account	Three types of investments: - Unit Trusts - Real Estate - Shares

The following is the meaning of simple interest and compound interest in savings:

Simple interest is interest paid on capital only while compound interest is interest on interest.

Compound interest is interest calculated on the initial principal as well as interest accrued for the previous period of the deposit or loan.

3.3

Savings and Investments

We will learn about the meaning of savings and investments.

SAVINGS	INVESTMENT
Excess money deposited in the bank, bag or safe.	An alternative way to get a return in the future.
Three types of savings: - Savings Account - Current Account - Fixed Deposit Account	Three types of investments: - Unit Trusts - Real Estate - Shares

The following is the meaning of simple interest and compound interest in savings:

Simple interest is interest paid on capital only while compound interest is interest on interest.

Compound interest is interest calculated on the initial principal as well as interest accrued for the previous period of the deposit or loan.