For example, a loan that compounds every quarter will accumulate more interest than the same interest rate compounded annually. Because it is computed over the smallest possible interval, ...

Compounding is the process where an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings for an investor.

One compound interest example from Ryan: Let’s say Sarah, age 20, invested $1,000 today. If she didn’t touch it until she retired at age 70, her money could increase by 32 times.

When someone mentions compounding interest, most people think about how interest accrues on their savings account. Did you know however that the concept of compounding is actually applicable to so ...