Compound Interest Calculator
If you want to understand how your money will grow if you save your money in the bank, you should learn about compound interest. Compound interest is an interest that arises when interest is added to the principal everytime the interest is due, so the total amount will be calculated together to earn next interest. The addition of interest to the principal to get another interest is called compounding. You will see that some banks put advertisement about daily interest rate, weekly interest rate which mean your savings amount will grow based on that interest period. For example, a saving with $1000 initial principal and 1% interest per month would have a balance of $1010 at the end of the first month, $1020.1 at the end of the second month, and so on.
This excel spreadsheet will help you understand that calculation.
