Students should take the time to use an interest calculator to see just how their student loans cost them significant amounts of money in interest alone every month.
A lot of us investment amateurs almost twist in pain at the thought of placing hard earned savings in the hands of so-called shady bankers. Much of this anxiety and fear is really a direct result of lacking the right knowledge when it comes to compound interest. Investment institutions award their investors with compound interest at an agreed rate of interest and after a certain period of time. To an investor this amounts to a kind of silent profit you need not sweat for. However, with the right knowledge and formulas you will know what to expect from a possible investment beforehand, and this is where a compound interest calculator comes into play. One thing ought to be remembered though, which is the fact that the principles of compound interest and the features of the calculator also apply in the case of borrowed money.
Compound interest is basically the amount of interest that is generated from the principal amount of money you would have invested; in other words it is the profit gained from money saved. Once the interest is earned it is then added to the principal amount and is compounded once more. Therefore you stand to make more money than usually possible if you choose to compound your money over and over again.
The Calculator Itself
This interest calculator is a gadget that enables you to know a variety of information. You can calculate the amount of money you have amassed during the period of investment, plus of course it is possible to calculate the charges and figures you must pay on the original amount borrowed from the bank. Then of course there is the formula for compound interest, which is also featured on the calculator. To make use of this formula you need four very important things: the amount of money invested/borrowed, the time period, the agreed interest rate and the number of times the interest is to be compounded. If this proves to be a little too complex then the online calculator might be a user-friendly tool.
There are a lot of reasons why having a compound interest calculator is a must. You will definitely avoid being ripped off and you can know, beforehand, what is at stake when it comes to investing or borrowing money. These days knowledge is power, so buying this calculator is a vital step towards empowering and liberating yourself.