Compound interest is interest added to a principal balance, increasing the balance and the amount of interest earned in the next period.

The key to calculating compound interest lies in the exponential function, which raises a number to a power.

Why Einstein Considered Compound Interest the Most Powerful Force in the Universe Is the power of compound interest really the 8th Wonder of the World?

Compound interest is when the interest you earn on a balance in a savings or investing account is reinvested, earning you more interest. As a wise man once said, “Money makes money. And the ...