Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods. It helps your money grow faster over time.
Formula: A = P(1 + r/n)^(nt)
Where A = Amount, P = Principal, r = Rate, n = Compounding frequency, t = Time
Compound interest is interest earned on both the principal amount and previously earned interest, allowing your investment to grow exponentially over time.