Compound Interest

What is Compound Interest?

● "Interest on interest," and will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount.

● Compound interest can significantly boost investment returns over the long term. While a $100,000 deposit that receives 5% simple interest would earn $50,000 in interest over 10 years, compound interest of 5% on $10,000 would amount to $62,889.46 over the same period.