See how your money grows with the power of compounding
| Year | Opening | Interest | Contributions | Closing |
|---|
Compound interest is interest calculated on both the initial principal and the interest that has been added over previous periods. Albert Einstein reportedly called it "the eighth wonder of the world." The formula is:
A = P × (1 + r/n)^(n×t)
Where P = Principal, r = Annual rate, n = Compounding frequency, t = Time in years.
| Simple Interest | Compound Interest | |
|---|---|---|
| Formula | P × r × t | P × (1 + r/n)^(n×t) |
| Interest on | Principal only | Principal + accumulated interest |
| Growth | Linear | Exponential |
| Best for | Short-term loans | Long-term investments |
© 2026 dconverter.org. All Rights Reserved.