Compound Interest
Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. It can be thought of as "interest on interest," as it grows exponentially over time due to the compounding effect. Compound interest is commonly used in the financial industry for investments and loans, and it plays a significant role in determining the final amount of money earned or owed.
External Links
- [compound-interest.com] Link to Start - Side Hustle From Home
- [compoundchem.com] Compound Interest: Chemistry infographics