Learn How To Calculate Compound Interest | The Calculator King

Learn How To Calculate Compound Interest: Compound interest is a type of interest where the interest earned in one period is added to the principal so that in the next period, interest is earned on both the principal and the interest from the previous period. This can cause the interest to grow at an accelerating rate over time.

For example, if you deposit $1000 in a savings account that pays 5% annual interest, you will have earned $50 in interest at the end of the first year, for a total balance of $1050. However, in the second year, you will earn interest not only on the original $1000 principal but also on the $50 in interest from the first year. This means your interest earned in the second year will be $52.50, for a total balance of $1102.50. As you can see, the interest earned each year is growing, because it is calculated on a larger amount.

Compound Interest Calculator: https://www.thecalculatorking.com/calculators/compound-interest-calculator

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Title: Learn How To Calculate Compound Interest

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