Economics
Simple Interest
Quick fact
If you deposit $1,000 in a savings account offering 5% simple interest per year, after 3 years you'll have earned $150 in interest—regardless of how long the money stays in the account beyond that period.
Why this is interesting
Imagine you lend $100 to a friend, and they promise to pay you back with 10% interest each year. Have you ever wondered exactly how much extra money you'll get after two years?