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Frequently Asked Questions
What is the compound interest formula?
A = P ร (1 + r/n)^(nรt), where P is principal, r is the annual rate (as a decimal), n is how many times interest compounds per year, and t is the number of years. Interest earned = A โ P.
How does compounding frequency affect returns?
The more often interest compounds (e.g. monthly vs annually), the more you earn, because each periodโs interest itself starts earning interest sooner.
See how your money grows with compound interest at different compounding frequencies.