What is compound interest!!
What is compound interest!!
Compound interest is the amount of principal that gradually increases automatically. When the principal increases The interest earned will also increase. is like the interest of interest
example
If you start saving or investing that earns 10% interest per year, where we deposit 100 baht, after 1 year, we will receive 10 baht interest, our deposit will increase by another 10 baht to 110 baht, and after 2 years, will receive an additional 10% interest of 110 baht to 11 baht, resulting in a deposit of 121 baht and so on every year, this is called compound interest
or vice versa It is to borrow money and not be able to pay according to the requirements until there is residual interest. effect of compound interest It will happen the same way but in terms of debt.
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