Knaph

Compound interest

Interest earned on previous interest as well as the original amount - so savings (and debts) grow faster and faster.

Level 1 · Foundation

You can compute compound growth year by year.

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Levels of understanding

  1. 1

    Foundation

    You can compute compound growth year by year.

    Opens after

    InterestVariablesThe compound interest formula is algebra - a balance written in terms of rate and time.
  2. 2

    Deeper

    You judge growth in real terms - what money will actually buy once inflation is accounted for.

    Master level 1 first

    InflationFive percent growth means little if prices rise five percent too. Real growth is the rate minus inflation.

Your path here

What's still between you and Compound interest, level 1, in the order you can learn it.

  1. 1MoneyLevel 1 · Foundation · Finance
  2. 2InterestLevel 1 · Foundation · Finance
  3. 3Natural numbersLevel 1 · Foundation · Number Systems
  4. 4IntegersLevel 1 · Foundation · Number Systems
  5. 5VariablesLevel 1 · Foundation · Algebra
  6. 6Compound interestLevel 1 · Foundation · Finance

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