Korshub

  📌 Introduction Let’s be honest—interest rates may not sound like the most exciting topic, but they affect your wallet every single day . Whether you're borrowing money for a car, saving for your future, or trying to understand a credit card statement, interest rates matter. So, what are they exactly? And how do they work? This article breaks it all down in simple, everyday language—no finance degree required. 📘 Basics of Interest Rates Simple Interest vs. Compound Interest Simple interest is calculated on the original amount (principal). For example, if you borrow $1,000 at 5% interest per year, you pay $50 each year. Compound interest , on the other hand, adds interest to the previous interest. So your money (or debt) grows faster. Example: A savings account earning compound interest will grow more over time than one earning simple interest. How Interest Rates Are Calculated Interest = Principal × Rate × Time But it gets trickier with compounding, fees, and dail...