💡 About Compound Interest

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It’s often called “interest on interest” and can significantly grow your investments over time.

Formula: A = P(1 + r/n)^nt + PMT × [((1 + r/n)^nt – 1) / (r/n)]

Where: A = Final amount, P = Principal, r = Rate, n = Compounds per year, t = Time, PMT = Monthly contribution