Finance · Time Value of Money

Compound Interest

$1,000 · 7.0% · 20y

Starter Fund

Final balance: $0
annual
Predict

Doubling time

Estimate how long it takes the balance to double, then scrub Years to verify. (Rule of 72: 72 ÷ rate%.)

Try this

Tiny changes

  • Bump rate by 1% — how much does the final change?
  • Switch to continuous compounding — is the bump linear?
What did you notice?

Reflection