Learn what compound interest is, how it’s calculated—from annual rates to continuous compounding—and why it’s powerful for savings (and dangerous for debt).
Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Anthony Battle is a CERTIFIED FINANCIAL PLANNER™ professional. He earned the ...
What these two processes share is baked into the math of each. In fact, in that respect, they're nearly identical. They both involve some stuff (atoms or money) that is either growing or shrinking.