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See how your money grows exponentially with the power of compounding. Compare it with simple interest.
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. It is often referred to as 'interest on interest'.
The formula is: A = P(1 + r/n)^(nt), where A is the future value, P is principal, r is the annual rate, n is the number of compounding periods per year, and t is the time in years.
Compounding is powerful because your money grows exponentially over time. The interest you earn also starts earning interest, accelerating the growth of your wealth, especially over long periods.
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