Interest, in general, is a kind of “counterpart” when lending money or other goods to people or companies. In this sense, for each period that passes and the value or item is on loan, a percentage is applied to the total amount, as if it were a type of rent charged.Consider an example: you borrowed money from a friend and, as a condition, he asked you to return the money plus an amount at the end of the term. This extra amount is, precisely, interest.It is noteworthy that they can be simple or composite. In general, we can say that compound interest is an “interest on interest” practice. You can often find them in the financial system, as they are more profitable compared to simple interest rates.Another way to understand them is to think that they are a value in which the monthly interest is incorporated into the capital. That is, interest will always be levied on the initial amount plus what has been accumulated so far.
Juros compostos
