Term
Simple interest
Interest calculated only on the original amount, never on the interest already earned. It grows in a straight line.
In pesos: $10,000 MXN at 10% simple interest earns $1,000 every year: $30,000 after 20 years.
Where to go deeper
2/4 5 min Read Simple vs. compound interest What compound interest actually is, why time matters more than the amount you start with, and how the same force works against you on a credit card.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.