About Compound Interest

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It's the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.

The Power of Compounding:

The more frequently interest is compounded within a given time period, the more interest will be accrued. This is why compounding frequency is an important factor in investment growth.