Your age doesn't matter: You can get at that money without penalty or even income taxes. Both taxes and the 10% penalty apply to the earnings on your contributions, though, until your odometer hits 59 1/2 and you've had the money socked away for five years (with a few exceptions, below).
The term âcompound interestâ means that any interest charges are added to the principal (which is the amount you originally borrowed) so that your debt grows exponentially. If you have a $100 debt and it accrues 10% interest every month, then the first month you will be charged ten dollars (100 x 0.10).With compound interest, that ten dollars is added to your original debt, so now you have $110 of debt.f you charge the $200 to your credit card, then the amount will show up on your monthly credit card bill and you will have a 30 day grace period to pay it off, after which youâll begin to accrue interest on it.
A credit cardâs interest rate is the price you pay for borrowing money. For credit cards, the interest rates are typically stated as a yearly rate, called the annual percentage rate (APR). On most cards, you can avoid paying interest on purchases if you pay your balance in full each month.or credit cards, the interest rates are typically stated as a yearly rate, called the annual percentage rate (APR). On most cards, you can avoid paying interest on purchases if you pay your balance in full each month.