{"id":4525,"date":"2017-03-07T15:31:01","date_gmt":"2017-03-07T13:31:01","guid":{"rendered":"https:\/\/stbb.co.za\/dev2\/?p=4525"},"modified":"2019-11-25T15:33:11","modified_gmt":"2019-11-25T13:33:11","slug":"thought-of-the-week-making-sense-of-interest-calculations","status":"publish","type":"post","link":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/","title":{"rendered":"Thought of the Week | Making Sense Of Interest Calculations"},"content":{"rendered":"

Whether borrowing or investing, interest matters! When borrowing, you would prefer simple interest, but when investing, you would choose compound interest. Why?<\/p>\n

Simple interest is calculated on the principal amount. If you are the lender, and you advance R1 000 at 10% per annum, you will earn 10% interest after 12 months, and in the next year, the same amount. By the same token, if you are the borrower, you will pay R100 interest in the first year, and a further R100 interest in the next year.<\/p>\n

Described as \u201cinterest on interest\u201d, compound interest is calculated on the principal amount plus accumulated interest earned in previous periods. For example, if you make a loan of R1 000 at 10% compound interest per annum, your loan will attract interest of R100 in the first 12 months, and the value of your loan will then be R1 100. In the next year, interest will be calculated on R1 100 and will amount to R110, and your loan value will increase to R1 210, and so on.<\/p>\n

Clearly, it is important to understand how interest is dealt with in any loan agreement.<\/p>\n

Contact us<\/span><\/a> should you require assistance with any contemplated loan transaction.<\/p>\n","protected":false},"excerpt":{"rendered":"

Whether borrowing or investing, interest matters! When borrowing, you would prefer simple interest, but when investing, you would choose compound interest. Why? Simple interest is calculated on the principal amount. If you are the lender, and you advance R1 000<\/p>\n","protected":false},"author":60,"featured_media":545,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[110],"tags":[],"class_list":["post-4525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thought-of-the-week"],"acf":[],"yoast_head":"\nThought of the Week | Making Sense Of Interest Calculations - STBB<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hein Nauschutz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/\"},\"author\":{\"name\":\"Hein Nauschutz\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#\\\/schema\\\/person\\\/ef1dac0a9d587ce2ded5c1dd0f33b0ce\"},\"headline\":\"Thought of the Week | Making Sense Of Interest Calculations\",\"datePublished\":\"2017-03-07T13:31:01+00:00\",\"dateModified\":\"2019-11-25T13:33:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/\"},\"wordCount\":199,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/wp-content\\\/uploads\\\/2019\\\/05\\\/rawpixel-600787-unsplash-1.jpg\",\"articleSection\":[\"Thought Of The Week\"],\"inLanguage\":\"en-ZA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/\",\"url\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/\",\"name\":\"Thought of the Week | Making Sense Of Interest Calculations - STBB\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/wp-content\\\/uploads\\\/2019\\\/05\\\/rawpixel-600787-unsplash-1.jpg\",\"datePublished\":\"2017-03-07T13:31:01+00:00\",\"dateModified\":\"2019-11-25T13:33:11+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/#breadcrumb\"},\"inLanguage\":\"en-ZA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-ZA\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/#primaryimage\",\"url\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/wp-content\\\/uploads\\\/2019\\\/05\\\/rawpixel-600787-unsplash-1.jpg\",\"contentUrl\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/wp-content\\\/uploads\\\/2019\\\/05\\\/rawpixel-600787-unsplash-1.jpg\",\"width\":2500,\"height\":1668},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-making-sense-of-interest-calculations\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Thought Of The Week\",\"item\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/category\\\/thought-of-the-week\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Thought of the Week | Making Sense Of Interest Calculations\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#website\",\"url\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/\",\"name\":\"STBB\",\"description\":\"Welcome to STBB - We deal with every legal matter\",\"publisher\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-ZA\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#organization\",\"name\":\"STBB\",\"url\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-ZA\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/STBB_logo_2025.png\",\"contentUrl\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/STBB_logo_2025.png\",\"width\":218,\"height\":66,\"caption\":\"STBB\"},\"image\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/company\\\/thebigsmallfirm\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#\\\/schema\\\/person\\\/ef1dac0a9d587ce2ded5c1dd0f33b0ce\",\"name\":\"Hein Nauschutz\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-ZA\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/52597d74ef2f3afced672484a34e8d2758b66ee4fda6929a95a13424bbc1fe07?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/52597d74ef2f3afced672484a34e8d2758b66ee4fda6929a95a13424bbc1fe07?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/52597d74ef2f3afced672484a34e8d2758b66ee4fda6929a95a13424bbc1fe07?s=96&d=mm&r=g\",\"caption\":\"Hein Nauschutz\"},\"description\":\"Hein is a practising Attorney and Conveyancer with a recognised expertise in property law. His professional practice covers a broad spectrum of property-related issues, including sectional title schemes, property developments, mortgage bonds, and property transfers. Hein is dedicated to delivering exceptional legal services, working closely with developers, town planners, and municipalities to effectively manage the complexities of property development projects. His consultations are focused on facilitating developments and resolving regulatory challenges, ensuring compliance with local planning and zoning regulations. Hein is an active participant in the property industry, regularly providing legal updates for banks and estate agents. These updates address recent changes in property law, best practices, and emerging trends, demonstrating his commitment to keeping industry professionals informed and prepared. In addition, Hein is a consultant for the UCT-Nedbank Urban Real Estate Research Unit.\",\"url\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/author\\\/hein-nauschutz\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Thought of the Week | Making Sense Of Interest Calculations - STBB","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/","twitter_misc":{"Written by":"Hein Nauschutz","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/#article","isPartOf":{"@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/"},"author":{"name":"Hein Nauschutz","@id":"https:\/\/stbb.co.za\/dev2\/#\/schema\/person\/ef1dac0a9d587ce2ded5c1dd0f33b0ce"},"headline":"Thought of the Week | Making Sense Of Interest Calculations","datePublished":"2017-03-07T13:31:01+00:00","dateModified":"2019-11-25T13:33:11+00:00","mainEntityOfPage":{"@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/"},"wordCount":199,"commentCount":0,"publisher":{"@id":"https:\/\/stbb.co.za\/dev2\/#organization"},"image":{"@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/#primaryimage"},"thumbnailUrl":"https:\/\/stbb.co.za\/dev2\/wp-content\/uploads\/2019\/05\/rawpixel-600787-unsplash-1.jpg","articleSection":["Thought Of The Week"],"inLanguage":"en-ZA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/","url":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/","name":"Thought of the Week | Making Sense Of Interest Calculations - STBB","isPartOf":{"@id":"https:\/\/stbb.co.za\/dev2\/#website"},"primaryImageOfPage":{"@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/#primaryimage"},"image":{"@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/#primaryimage"},"thumbnailUrl":"https:\/\/stbb.co.za\/dev2\/wp-content\/uploads\/2019\/05\/rawpixel-600787-unsplash-1.jpg","datePublished":"2017-03-07T13:31:01+00:00","dateModified":"2019-11-25T13:33:11+00:00","breadcrumb":{"@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/#breadcrumb"},"inLanguage":"en-ZA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/"]}]},{"@type":"ImageObject","inLanguage":"en-ZA","@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/#primaryimage","url":"https:\/\/stbb.co.za\/dev2\/wp-content\/uploads\/2019\/05\/rawpixel-600787-unsplash-1.jpg","contentUrl":"https:\/\/stbb.co.za\/dev2\/wp-content\/uploads\/2019\/05\/rawpixel-600787-unsplash-1.jpg","width":2500,"height":1668},{"@type":"BreadcrumbList","@id":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-making-sense-of-interest-calculations\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/stbb.co.za\/dev2\/"},{"@type":"ListItem","position":2,"name":"Thought Of The Week","item":"https:\/\/stbb.co.za\/dev2\/category\/thought-of-the-week\/"},{"@type":"ListItem","position":3,"name":"Thought of the Week | Making Sense Of Interest Calculations"}]},{"@type":"WebSite","@id":"https:\/\/stbb.co.za\/dev2\/#website","url":"https:\/\/stbb.co.za\/dev2\/","name":"STBB","description":"Welcome to STBB - We deal with every legal matter","publisher":{"@id":"https:\/\/stbb.co.za\/dev2\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/stbb.co.za\/dev2\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-ZA"},{"@type":"Organization","@id":"https:\/\/stbb.co.za\/dev2\/#organization","name":"STBB","url":"https:\/\/stbb.co.za\/dev2\/","logo":{"@type":"ImageObject","inLanguage":"en-ZA","@id":"https:\/\/stbb.co.za\/dev2\/#\/schema\/logo\/image\/","url":"https:\/\/stbb.co.za\/dev2\/wp-content\/uploads\/2025\/06\/STBB_logo_2025.png","contentUrl":"https:\/\/stbb.co.za\/dev2\/wp-content\/uploads\/2025\/06\/STBB_logo_2025.png","width":218,"height":66,"caption":"STBB"},"image":{"@id":"https:\/\/stbb.co.za\/dev2\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.linkedin.com\/company\/thebigsmallfirm"]},{"@type":"Person","@id":"https:\/\/stbb.co.za\/dev2\/#\/schema\/person\/ef1dac0a9d587ce2ded5c1dd0f33b0ce","name":"Hein Nauschutz","image":{"@type":"ImageObject","inLanguage":"en-ZA","@id":"https:\/\/secure.gravatar.com\/avatar\/52597d74ef2f3afced672484a34e8d2758b66ee4fda6929a95a13424bbc1fe07?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/52597d74ef2f3afced672484a34e8d2758b66ee4fda6929a95a13424bbc1fe07?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/52597d74ef2f3afced672484a34e8d2758b66ee4fda6929a95a13424bbc1fe07?s=96&d=mm&r=g","caption":"Hein Nauschutz"},"description":"Hein is a practising Attorney and Conveyancer with a recognised expertise in property law. His professional practice covers a broad spectrum of property-related issues, including sectional title schemes, property developments, mortgage bonds, and property transfers. Hein is dedicated to delivering exceptional legal services, working closely with developers, town planners, and municipalities to effectively manage the complexities of property development projects. His consultations are focused on facilitating developments and resolving regulatory challenges, ensuring compliance with local planning and zoning regulations. Hein is an active participant in the property industry, regularly providing legal updates for banks and estate agents. These updates address recent changes in property law, best practices, and emerging trends, demonstrating his commitment to keeping industry professionals informed and prepared. In addition, Hein is a consultant for the UCT-Nedbank Urban Real Estate Research Unit.","url":"https:\/\/stbb.co.za\/dev2\/author\/hein-nauschutz\/"}]}},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/stbb.co.za\/dev2\/wp-content\/uploads\/2019\/05\/rawpixel-600787-unsplash-1.jpg","_links":{"self":[{"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/posts\/4525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/users\/60"}],"replies":[{"embeddable":true,"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/comments?post=4525"}],"version-history":[{"count":1,"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/posts\/4525\/revisions"}],"predecessor-version":[{"id":4526,"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/posts\/4525\/revisions\/4526"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/media\/545"}],"wp:attachment":[{"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/media?parent=4525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/categories?post=4525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stbb.co.za\/dev2\/wp-json\/wp\/v2\/tags?post=4525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}