Compound Interest Calculator
Calculate compound interest with different compounding frequencies.
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Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods. It results in exponential growth.
How does compounding frequency affect interest?
More frequent compounding (e.g., monthly vs annually) results in higher returns because interest is calculated and added more often, allowing it to compound on itself.
What is the formula for compound interest?
A = P(1 + r/n)^(nt), where A is the final amount, P is principal, r is annual rate, n is compounding frequency per year, and t is time in years.