In US most banks are insured by Federal Deposit Insurance Corporation FDIC a US. Gather variables the compound interest formula. Learn the compound interest formula.
It shows the snowball effect of continuous reinvesting of gains as opposed to cashing out which leads to exponential growth on the inital desposit.
Compound interest or interest on interest is calculated with the compound interest formula. And by rearranging that formula see Compound Interest Formula Derivation we can find any value when we know the other three. The compound interest formula solves for the future value of the investment. Interest RateEstimated Interest RateYour estimated annual interest rate.