Learn what compound interest is, how it’s calculated—from annual rates to continuous compounding—and why it’s powerful for savings (and dangerous for debt).

If you have a savings account, you might want to know how much you'll earn in interest for parking your cash there. Fortunately, calculating interest on a savings account is not as tough as you ...

The compound annual growth rate (CAGR) shows the annual rate of return of an investment over a certain period of time. It’s usually expressed in annual percentage terms. The CAGR formula can be used ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. The compound annual growth rate (CAGR) shows the ...

The rule of 72 is a shortcut investors can use to determine how long it will take their investment to double based on a fixed annual rate of return. To use the rule of 72, divide 72 by the fixed rate ...

Annual percentage rate, or APR, goes a step beyond simple interest by telling you the true cost of borrowing money. For example, the APR you receive when you buy a house takes into account the fees ...

The percentage rates thrown around when your small business secures a loan or invests are not always as self-explanatory, as they seem. This makes exploring the terms of any loan options you review ...

Small businesses rely on borrowing tools like loans and credit cards just as individual consumers do. A lender typically states terms such as a 10 percent interest rate and monthly payments. This ...

If you have a savings account, you might want to know how much you’ll earn in interest for parking your cash there. Fortunately, calculating interest on a savings account is not as tough as you might ...