Question 1

What isCompound interest？

Accepted Answer

Compound interestisInterestalsowillInterest，namely。formulaas FV = PV × (1 + r/n)^(n×t)，itsinPVasPrincipal，rasyear(s)Rate，nasCompounding，tasyear(s)number。

Question 2

Compound interestandSimple interesthaswhatDifference？

Accepted Answer

Simple interestonlyforPrincipal，Compound interestforPrincipalandalreadyProductInterestall。longPeriodsee，Compound interest'slongSpeedfarSupersetSimple interest。

Question 3

72theniswhat？

Accepted Answer

72thenuseatQuick estimateAssetstimestheneedTime：timesyear(s)number≈72÷year(s)Rate。e.g.year(s)Rate6%，approx12year(s)times。