Finance Calculator Pro

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.