With all the hype surrounding Bitcoin and the blockchain technology, it’s clear that most people don’t understand how Bitcoin actually works. So I wanted to take this opportunity to explain Bitcoin and the blockchain in general. This initial article will serve as a broad overview of Bitcoin that will eventually lead to more and more […]
Money you have today is likely worth less in the future due to inflation, so if you’re expecting a certain rate of return or interest rate, factor in inflation to find your real interest or return.
Although simple in concept, interest rates are confused with a myriad of terms, such as simple vs compound interest, nominal vs real interest and APR vs APY vs EAPR. So hold on to your hats, as we attempt to clear up this mess.
Some investments don’t rely on discrete periods with calculating interest or growth. Instead, they grow continously and require a formula that incorporates an infinite number of periods.
Whereas simple interest only considers the initial investment when calculating interest, compound interest also calculates interest on the interest.