The most common real-life application of the compound interest formula is a regular savings calculation. Read on to find answers to the following questions: What is the interest rate definition? What is the compound interest definition, and what is the compound interest formula? What is the ...
Compound Interest Compound interest is more complicated. Unlike simple interest, compound interest accrues or builds over time. You earn interest on the principal plus any interest that was paid previously. If you're borrowing money with compound interest, this means you'll pay intere...