Reviewed by Chris Hindle. Compound interest, or 'interest on interest', is calculated using the compound interest formula. The formula for compound interest is A = P (1 + r/n)^nt

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Step 3: Interest Rate. Estimated Interest Rate. Your estimated annual interest rate. Interest rate variance range. Range of interest rates (above and below the rate set above) that you desire to

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Compound interest - meaning that the interest you earn each year is added to your principal, so that the balance doesn't merely grow, it grows at an increasing rate - is one of the most useful concepts in finance. (or the advanced

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