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Compound interest diagram
calc
This compound interest calc describes the way that a loan or investment will increase in value over time at a constant rate of interest, without any withdrawl or deposit of funds. Methematially, it is a simple exponential function.
Principle
Interest rate%PA
Timeyears

Final amount
Return
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notes
In reality, interest rates are often variable and deposits and withdrawls may be made from time to time. When planning finances, one should also consider the underlting inflation rate that constantly works to devalue the sum.