Loading the player...
Compound interest is often called one of the most powerful concepts in finance. Find out what it is and how it can work for you.
Related Articles

Investing
How does Compound Interest Work?
A quick way to understand the impact of compound interest is to ask yourself if youâ€™d rather receive $100,000 a day for a month, or start with a penny on day one and double it every day for those ... 
Bonds & Fixed Income
Accelerating Returns With Continuous Compounding
Investopedia explains the natural log and exponential functions used to calculate this value. 
Investing Basics
Learn Simple And Compound Interest
Interest is defined as the cost of borrowing money, and depending on how it is calculated, can be classified as simple interest or compound interest. 
Personal Finance
Crafty Compounding
It is easier to become a millionaire now that at any time before. While you won' be buying islands, it is still a goal worth shooting for. 
Savings
How Interest Rates Work on Savings Accounts
Here's what you need to know to grow your rainyday fund. 
Professionals
The Effect Of Compounding
Learn all about this important function that Einstein thought was the greatest mathematical discovery ever. 
Investing Basics
APR and APY: Why Your Bank Hopes You Can't Tell The Difference
Banks use these rates to entice borrowers and investors. Find out what you're really getting. 
Investing
The Effective Annual Interest Rate
The effective annual interest rate is a way of restating the annual interest rate so that it takes into account the effects of compounding. 
Savings
Teaching Financial Literacy To Tweens: Earning And Paying Interest
The concepts of interest, compounding and the time value of money can be a tricky concept for kids to understand, but the lessons are worth it. 
Economics
Explaining Interest
Interest is the price charged to borrow money, and is typically expressed as a percentage of the principal, or the amount loaned.
You May Also Like
Sponsored content