Compound interest is a favorable method of compensating lenders and depositors wherein interest is periodically credited to the principal, and subsequent interest is paid on the increasing balance.

The Rule of 72 is a shortcut or rule of thumb used to estimate the number of years required to double your money at a given annual rate of return and vice versa.

Simple interest is more favorable for borrowers due to its non-compounding nature. Compound interest benefits investors by allowing earnings to also generate returns. Invest in avenues like stocks ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor ...

You might have heard people use the term compound interest, but if you can’t answer the question “What is compound interest?” then you’re missing out on how compound interest affects your finances.

Compound interest is a powerful force for consumers looking to build their savings. It creates a multiplier effect on your money that can help it grow more over time. Knowing how it works and how ...