A $10,000 five-year CD earning 5% would collect $2,833.59 in compound interest by the end of its term, while a similar CD earning 5% simple interest would return just $2,500.

Time-weighted return calculates a fund’s compound return using sub-periods, which are created each time cash moves into or out of the fund or portfolio. In doing so, TWR shows the real market ...

9 Moves For Building Lasting Wealth: What Smart Americans Are Doing Right This article originally appeared on GOBankingRates.com: 3 Key Differences Between Compound Returns and Compound Interest ...