Learn how compound interest works, how the formula is interpreted, and why time, contributions, and return assumptions change the final balance.
- A = P(1 + r/n)^(nt), where P is principal, r is the annual rate, n is compounding frequency, and t is time.
- With recurring contributions, the final result depends on both investment growth and repeated cash flow.
- The page includes example guides for contribution size, target planning, and return-rate sensitivity.