This compound interest calculator works by adding the previous year's interest earnings to the next year's principal.
Related knowledge: "Compound interest" is a method of calculating interest. According to this method, in addition to the interest being calculated based on the principal, the newly obtained interest can also generate interest, so it is commonly known as "interest compounding". The longer the term/the denser the cycle (that is, the more compound interest times), the more obvious the compound interest effect will be (compound interest is an important concept in modern financial management, investment, and business. The wealth growth generated by compound interest is called the "compound interest effect") will be more obvious, and the faster the wealth will grow.