Compound Interest

What is Compound Interest? Compound interest is interest calculated on both a principal amount of money and any interest already accumulated. Where is it important? In contrast to simple interest …. How to Calculate Compound Interest Example Compound Interest Calculations Example 1 Question: If $2,000 is invested in an account paying 8% compounded quarterly, how …

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Simple Interest

Learn how to calculate simple interest, and the future value of a simple interest investment or loan.

Compound Annual Growth Rate (CAGR)

Introduction The compound annual growth rate, or CAGR, is the average annual growth rate for any value or amount that grows over time, such as the rate of return of a stock or entire portfolio, factoring in reinvestment and therefore compounding. CAGR is a widely accepted way of smoothing out investment returns which allows comparing the performances of …

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