Compound Interest Formula:
A = P(1 + r/n)^(nt)
where:
• A = Final Amount
• P = Principal Amount
• r = Annual Interest Rate
• n = Number of times interest is compounded per year
• t = Time in years
Compound Interest Benefits:
• Interest earns interest
• Exponential growth over time
• Higher returns with longer periods
• More frequent compounding increases returns
• Powerful wealth-building tool
Compound Interest Tips:
• Start investing early
• Make regular contributions
• Choose higher interest rates
• Select more frequent compounding
• Stay invested for long periods
• Avoid withdrawing early