What is compound interest in simple terms?

Compound interest is when you earn interest on both your original deposit and the interest it has already earned. It creates a snowball effect where your money grows faster over time.

How is compound interest different from simple interest?

Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus all accumulated interest, making it grow exponentially.

What Is Compound Interest? The Force That Builds Wealth While You Sleep

Understand compound interest with real dollar examples. See how $1,000 grows at different rates and why starting early changes everything.

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