What does 'compound interest' mean?
AnswerInterest earned on the original amount and on past interest
With compounding, interest is added to the balance, so later interest is calculated on a larger amount.
Money · Facts & stats
Invest facts & stats
7 fact-checked facts about compound growth and saving, each with the reason behind it. 5 more are in today's round and join this page after it closes.
The basics
What is a 'bond'?
AnswerA loan to a government or company that pays interest
A bond is a debt: the buyer lends money to the issuer, who pays interest and repays the loan at maturity.
Going deeper
What does a 'bull market' describe?
AnswerA period of generally rising prices
A bull market is a sustained rise in prices; a falling market is called a bear market.
What is a 'dividend'?
AnswerA share of company profits paid to shareholders
Companies may pay part of their profits to shareholders as dividends, usually per share.
In which city did the first formal stock exchange develop in the early 1600s?
AnswerAmsterdam
The Amsterdam exchange grew up around trading shares of the Dutch East India Company, founded in 1602.
Expert level
With 10% interest compounded once a year, 100 grows to how much after 2 years?
Answer121
Year one gives 110, and 10% of 110 is 11, so the balance after year two is 121.
In lending, what does 'APR' stand for?
AnswerAnnual Percentage Rate
APR expresses the yearly cost of borrowing as a percentage rate.
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