Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.
-- Albert Einstein
Here’s a simple calculator to better understand compounding. The doc has:
where you can adjust inputs
that’s shows you growth over time
that contains one row for each time period. The chart is a just different way to view data in this table.
Tweaking four values in the
column to change formula inputs.
Clicking on the two buttons.
to clear the table and
to generate the compounding chart.
The calculator demonstrates the growth of
compounding at the rate of
8%, 1 time
per year, over a time period of
0.08 for a compounding rate of 8%
Compounding times Per
Usually 1. The number of times growth rate is applied per time period.
There are no rows in this table
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