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.
Hướng dẫn từng bước
- 1A = P(1 + r/n)^(nt) for periodic compounding
- 2A = Pe^(rt) for continuous compounding
- 3Rule of 72: years to double ≈ 72 ÷ annual rate %
Ví dụ có lời giải
đầu vào
$1,000 at 5%, 10 yrs (annual)
Kết quả
$1,628.89
Interest: $628.89
đầu vào
$1,000 at 5%, 10 yrs (monthly)
Kết quả
$1,647.01
$18 more from monthly compounding