Initial deposit
$
Number of periods
Rate per period
%
Investments every period
$
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    Compound interest is a mathematical principle that states that interest on a sum of money compounds over time. This means that the amount of interest that is earned on an initial investment is not the only thing that increases over time; the original principal also grows. This is why investments that have a high rate of compound interest are often more profitable than those with a low rate of interest.