Compound Interest

Learn about how and why stocks grow exponentially, as well as how you can calculate the hypothetical growth of an investment.


Main Ideas:

  • Compound interest refers to the concept of "interest on interest"
  • Compound interest = exponential growth while simple interest = linear growth
  • Many businesses exhibit compound interest as they expand exponentially
  • The compound interest formula can be used to model hypothetical stock growth


Access our compound interest calculator on google sheets or excel with the links/attachments below.

https://docs.google.com/spreadsheets/d/1YU5c7MRqww4xDAxFfN0cB81hEFN10gUAOA3Foa0Klas/copy