I need help understanding compound interest. Can you please explain it to me?
Compound interest is a type of interest that accumulates over time, and is calculated on the initial principal amount as well as all accumulated interest. It is typically expressed as a percentage rate, such as 5% or 10%. The total amount of interest earned will be greater than the original principal amount due to the accumulation of interest each period. This means that the more money invested in this form of interest, the higher the return.