## What is interest accrued

Interest is money that a person or organization owes for money that they have borrowed. It is also the amount of money that a person or organization earns on money that they have saved.

### How is interest accrued calculated

Interest is usually accrued on a daily basis. This means that every day, the interest that you owe will increase by a small amount. The amount of interest that you accrue each day depends on the APR (annual percentage rate) of your loan, as well as the outstanding balance of your loan. The APR is the yearly interest rate charged by the lender, expressed as a percentage.

### What is the difference between simple and compound interest

The difference between simple and compound interest is that, with simple interest, you only earn interest on the principal, or original, amount that you invested. With compound interest, you earn interest on both the principal and any interest that has accumulated.

This can cause some confusion when you’re buying, but in general, roasts fall into one of four color categories — light, medium, medium-dark and dark.

Many consumers assume that the strong, rich flavor of darker roasts indicates a higher level of caffeine, but the truth is that light roasts actually have a slightly higher concentration. The perfect roast is a personal choice that is sometimes influenced by national preference or geographic location. Within the four color categories, you are likely to find common roasts as listed below. It’s a good idea to ask before you buy. There can be a world of difference between roasts.

Light roasts

Light brown in color, this roast is generally preferred for milder coffee varieties. There will be no oil on the surface of these beans because they are not roasted long enough for the oils to break through to the surface.

-Light City

-Half City

-Cinnamon

## How is interest accrued calculated

Interest is money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt. In most cases, it is calculated as a percentage of the money lent, added to the original debt.

### How is simple interest calculated

Simple interest is calculated by multiplying the daily interest rate by the number of days that have elapsed since the last payment was made.

### How is compound interest calculated

Compound interest is calculated by adding the interest accrued in the current period to the principal amount, so that the interest accrued in the next period is based on the total (principal + interest) of the current period. This process of adding interest to the principal and then calculating future interest on this new total is repeated for as long as required.

See also what is duration? article, and article on what is maturity?.

## What is the difference between simple and compound interest

Interest that builds upon itself over time is called compound interest. The longer interest compounds, the more your money will grow. The main difference between simple and compound interest is that compound interest is interest that is earned on both the principal amount and the interest that has already been earned.

### What is the difference between simple and compound interest

The key difference between simple and compound interest is that, with simple interest, the interest amount you earn each year is a fixed percentage of your original investment. With compound interest, the interest you earn each year is added to your investment balance, so your interest begins to earn interest itself!

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