persentage icon with blue background6 Unbeatable Options Scalping Strategies by Sivakumar Jayachandran!  JOIN MASTERCLASS  persentage icon with blue background

100 FAQ's on Basic Finance

Module Units

What is the difference between return and interest?

Return: The percentage of loss & gain generated by an investment in return. A return is an internal measure to the investor. 


Formula: Ending value of investment - Beginning value of investment / Beginning Value of investment x 100


Interest: The cost of borrowing or lending money is interest. Interest is an external measure that relates to the cost of getting money from a lender. 


Simple interest formula is given:    

         SI = (P × R ×T) / 100

SI = simple interest
P = principal
R = interest rate (in percentage)
T = time duration (in years)


The compound interest formula is given as:  

       A = P(1+R/n)nt

A = amount
P = principal
R = rate of interest
n = number of times interest is compounded per year
t = time (years)

Did you like this unit?

Units 14/101