Why do people save and how is interest calculated on money saved?

In the simplest of words, $1,000 at 1% interest per year would yield $1,010 at the end of the year. But that is simple interest, paid only on the principal. Money in savings accounts will earn compound interest, where the interest is calculated based on the principal and all accumulated interest.

Benjamin Franklin provided an example of the power of compounding—dubbed snowballing—where $4,500 left to each of two American cities outperformed the rate of inflation over 200 years.

So in the case of savings accounts, interest is compounded, either daily, monthly, or quarterly, and you earn interest on the interest earned up to that point. The more frequently interest is added to your balance, the faster your savings will grow. So with daily compounding, every day the amount that earns interest grows by another 1/365th of 1%. At the end of the year, the deposit has grown to $1,010.05.

Explanation:

hope this helps :)

People save money so they get buy things for themselves they also save money so they could get what they want. Multiply the principal amount by the number of days expressed in years. Divide the product into the amount of accumulated interest. For example, say your principal is $1,000, the number of days is 180 (one-half year), and the accumulated interest is $15.

Explanation:

"a problem throughout latin america is widespread poverty. what can those countries improve? the higher the literacy rate" or "education, the lower the rate of poverty".

although the majority of the total population and the population   poor in latin america and the caribbean is in the centers   urban areas, in relative terms poverty remains a   rural phenomenon in the region. the incidence of poverty and   extreme poverty is much greater in rural areas than   in urban areas without going further, in 1997 more than half of the   rural households lived in poverty and about a third in   situation of extreme poverty. in addition, the difficult economic situation   of most of the countries in the region in the past   two years has surely deteriorated those figures. to the poor   of the rural areas of the region are raised at least   three basic problems: i); insufficient nutrition, poor health and   poor educational services; ii); scarce opportunities   productive employment in agriculture and non-agricultural activities;   and iii); low degree of organization to effectively promote   the rural interests. the number and variety of circumstances   that cause rural poverty, as well as heterogeneity   of conditions in which it occurs in different countries   and regions hinder the search for effective solutions and   efficient to raise the welfare of the rural population.  

the mechanisms to reduce poverty are   focuses on three types of important action possibilities and   complementary to generate or raise the income of the poor   of rural areas: one that is based on the growth of   agricultural sector; another that aims at sustainable use and conservation   of natural resources, and the last based on the importance   growing rural economic activities that   they develop outside the agricultural land. there are at least other   two possibilities for reducing rural poverty: the traditional migration to urban areas and assistance to   people who need income transfers to overcome   the poverty threshold or to have a minimum access to   social safety nets.

people had jobs and began to work. that’s why the commercial revolution was great.