If you invested $10,000 at 5% simple interest for 10 years, you would receive $500 in interest every year, for a total of $5,000 in earned interest at the end of year 10. This would make your total of ...

Discrete compounding refers to the method by which interest is calculated and added to the principal at certain set points in time. For example, interest may be compounded weekly, monthly, or yearly.

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. The present value (PV) of a bond is the sum of ...