Present Value Principal Amount. Even small deposits to a. Compound interest is the total amount of interest earned over a period of time taking into account both the interest on the money you invest this is called simple.
For the formula for compound interest just algebraically rearrange the formula for CAGR.
Annual Interest Rate How many years. Its something about investing that many people arent familiar with but it plays an essential role in making investments profitable. Discover the miracle of compounding. It can be handy to visualize compound interest by creating a simple model in Excel that shows the growth of your investment.