This video will help you in understanding the basic concepts of Compound Interest and formulas to quickly attempt these questions in competitive exams.

Difference Between Simple Interest and Compound Interest First, we’ll begin with the basic and brief definitions and formulas of simple and compound interest.

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

When looking at a narrow time frame like a single bank statement period, the compound interest formula will give similar results to the simple interest formula.

When it comes to calculating interest, there are two basic choices -- simple and compound.

Simple interest is based on the principal amount of a loan, while compound interest is based on the principal plus accumulated interest. Learn more in our guide.

How to Write a Program to Calculate Compound Interest. Whether it's figuring the mortgage on commercial property or the rate on a short-term loan, compound interest calculations are a basic ...

CNBC Select defines compound interest, how it works and ways to take advantage of it if you're looking for a new credit card or somewhere to stash your cash.

And that is the basic principle of compound interest – gains on gains. Increase the time and the amount invested and the gains become more and more pronounced.