Three elements of compound interest

The three elements of compound interest are: the amount of capital invested, the realized rate of return and the investment period.

Compound interest is a method of calculating interest. According to this method, the interest will be calculated according to the principal, or new interest can be calculated, so it is commonly called "rolling interest", "snowballing" or "overlapping interest".

As long as the frequency of calculating interest is higher, the wealth grows faster and the term is longer, the effect will be more obvious.