Jinsi ya kukokotoa Compound

Compound ni nini?

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.

Mwongozo wa Hatua kwa Hatua

1. 1A = P(1 + r/n)^(nt) for periodic compounding
2. 2A = Pe^(rt) for continuous compounding
3. 3Rule of 72: years to double ≈ 72 ÷ annual rate %

Mifano Iliyotatuliwa