Month | Principal ($) | Value ($) | Growth ($) |
---|---|---|---|
Starting Value | $10000.00 | $10000.00 | $0.00 |
Month 1 | $10000.00 | $10083.33 | $83.33 |
Month 2 | $10000.00 | $10167.36 | $84.03 |
Month 3 | $10000.00 | $10252.09 | $84.73 |
Month 4 | $10000.00 | $10337.52 | $85.43 |
Month 5 | $10000.00 | $10423.67 | $86.15 |
Month 6 | $10000.00 | $10510.53 | $86.86 |
Month 7 | $10000.00 | $10598.12 | $87.59 |
Month 8 | $10000.00 | $10686.44 | $88.32 |
Month 9 | $10000.00 | $10775.49 | $89.05 |
Month 10 | $10000.00 | $10865.29 | $89.80 |
Month 11 | $10000.00 | $10955.83 | $90.54 |
Month 12 | $10000.00 | $11047.13 | $91.30 |
Compound interest is the process where interest is added to the principal, so that from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compounding.
Use this space to explain key terms, provide investment advice, or link to related tools and resources that will help users make informed financial decisions.
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods.
Interest can be compounded annually, semi-annually, quarterly, monthly, daily, or continuously, depending on the terms of the investment or loan.
It allows investments or debts to grow faster compared to simple interest, as interest is earned on interest previously added.