learn.howToCalculate
learn.whatIsHeading
Compound interest earns returns on both the initial principal and previously accumulated interest. This creates exponential growth. Simple interest, by contrast, only grows on the original principal.
Guia passo a passo
- 1A = P(1 + r/n)^(nt) for periodic compounding
- 2A = Pe^(rt) for continuous compounding
- 3Rule of 72: years to double ≈ 72 ÷ annual rate %
Exemplos resolvidos
Entrada
$1,000 at 5%, 10 yrs (annual)
Resultado
$1,628.89
Interest: $628.89
Entrada
$1,000 at 5%, 10 yrs (monthly)
Resultado
$1,647.01
$18 more from monthly compounding