Simple vs. Compound Interest

💡 Investor Insight: Simple vs. Compound Interest

Not all interest works the same—and the difference matters more than most people realize.

👉 Simple Interest
You earn interest only on your original investment.

👉 Compound Interest
You earn interest on your investment plus the interest it has already earned.

Example:
$10,000 at 7%

• Simple interest → $700/year

• Compound interest → grows faster each year as interest builds on itself

Over time, that difference can become significant.

Understanding how your money grows is just as important as the rate itself.

I share insights like this to help investors think more strategically about building wealth.

— Emily