In simple words, what are the differences of simple interest, compound interest and annuity?

Answer 1

Simple interest pays the same rate every year on only the initial amount invested.

Compound interest pays on the accumulated interest as well as the original investment.

http://www.basic-mathematics.com/simple-vs-compound-interest.html

An annuity is designed to pay the holder a fixed amount of money in regular payments.

http://www.investopedia.com/terms/a/annuity.asp#axzz2H8vy1uYv

Answer 2

thanks ms. sue:-)

Answer 3

You're welcome, Jp.