Finance Calculator Pro

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Understanding Compound Interest

Compound interest is the addition of interest to the principal sum of a loan or deposit. It's essentially earning interest on your interest, accelerating the growth of your investment over time.

Key Components:

  • Principal: Initial investment amount
  • Interest Rate: Annual percentage of growth
  • Time: Investment duration in years

How to Use This Calculator

  1. Enter the initial investment amount (Principal).
  2. Input the annual interest rate as a percentage.
  3. Specify the time period in years.
  4. Click "Calculate" to see the final amount.

Note: This calculator assumes annual compounding. Real-world scenarios may vary based on compounding frequency.

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