Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Compound interest is a favorable method of compensating lenders and depositors wherein interest is periodically credited to the principal, and subsequent interest is paid on the increasing balance.

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Compound interest is a means of calculating the potential return from an investment that takes the cumulative effect of interest into account. Compound interest works by factoring in the effect of ...

Compound interest is a means of calculating the potential return from an investment that takes the cumulative effect of interest into account. How does compound interest work? Compound interest works ...