Compound interest grows at a faster rate than basic interest ... When calculating interest-on-interest, the compound interest formula determines the amount of accumulated interest on the principal ...

The formula for calculating savings account interest uses the initial deposit, the annual interest rate and the years of growth. Compound interest earns the account holder more than simple ...

the calculations are a bit more complicated than the basic interest rate. The formula for calculating compound interest is A = P(1 + r/n)^nt. A is the amount of money you'll wind up with.