Section 2.1.3

In this episode, we explore different ways to define interest rates across multiple periods, focusing on the difference between compound interest and simple interest. We revisit how the same investment growth can be expressed using different rate conventions, depending on whether compounding is included. We explain that while these definitions may vary, they do not change the actual dollar outcome, only how the return is described. Understanding this distinction is critical, as using the wrong convention or mixing them can lead to incorrect calculations. This episode reinforces the importance of consistency when working with time value of money formulas and helps build a clearer understanding of how returns are measured in real estate finance. This episode was developed and produced by Nicole Jordan and Elizabeth Schrim. Content was generated using Wondercraft AI.© 2026 CRE Explained Podcast Team.Based on Commercial Real Estate Analysis for Investment, Finance, and Development (4th Edition) by David M. Geltner, Norman G. Miller, Alex van de Minne, Piet Eichholtz, Thies Lindenthal, and Lily Shen.Developed through Clemson University Creative Inquiry (CI) 4980, under the supervision of Dr. Lily Shen.Reference Material: Commercial Real Estate Resources | CREBook.net This episode includes AI-generated content.