Compound Interest is a calculation method where interest is earned not only on the principal but also on previously accumulated interest. It has the characteristic of accelerating returns over time.
A = P × (1 + r)^t
The Rule of 72 is a simple method to estimate how long it will take for an investment to double.
Years to Double Investment = 72 ÷ Annual Interest Rate (%)
| Period | Principal ($) | Valuation Amount ($) | Period Interest ($) | Accumulated Interest ($) | Cumulative Return Rate (%) |
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| Scenario Name | 5 Years | 10 Years | 20 Years | 30 Years | Risk Level |
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