YouTube on MSN: What is the compound interest formula and what does it mean? Learn about compound interest. Compound interest is an additional money added to an investment, deposit or a loan, calculated based on the principal and the accumulated interest.

Understanding the Context

A compound interest ... Compound interest is interest that's calculated on both the initial principal of a deposit or loan and on all accumulated interest. It's a tremendous advantage for savers and investors but not so much ... Einstein allegedly called compound interest the eighth wonder of the world.

Key Insights

Benjamin Franklin defined it more poetically: “Money makes money. And the money that money makes, makes money.” Here’s ...