Compound Interest Calculator

Compound Interest Calculator

Understanding simple and compound interest is key to making informed financial decisions.

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Simple interest is calculated only on the initial principal, providing steady and predictable growth.

Compound interest includes interest on prior interest, resulting in exponential growth of investments or debts.

Compound interest helps your money grow faster but may increase costs if you're the borrower.

Key formulas: Simple Interest = P × r × t; Compound Interest = A = P(1 + r/n)^{nt}

Choosing the right type of interest calculation is vital for financial planning and goal attainment.