Wolfram Demonstrations Project

Compound interest compared to simple interest at various rates, terms, and compounding periods.

Screenshot 1: Frequent compounding at a high interest rate.

Screenshot 2: Less frequent compounding at the same rate reaches a lower total.

Screenshot 3: Less frequent compounding at the same rate reaches a lower total.

Screenshot 4: Compound interest is vastly higher than simple after a long period.

Screenshot 5: Monthly vs. annual compounding raises the previous total by 20%.

Contributed by: Jason Cawley

Embed Interactive Demonstration New!

RELATED RESOURCES

Mathematica » The #1 tool for creating Demonstrations and anything technical.	Wolfram\|Alpha » Explore anything with the first computational knowledge engine.	MathWorld » The web's most extensive mathematics resource.	Course Assistant Apps » An app for every course— right in the palm of your hand.
Wolfram Blog » Read our views on math, science, and technology.	Computable Document Format » The format that makes Demonstrations (and any information) easy to share and interact with.	STEM Initiative » Programs & resources for educators, schools & students.	Computerbasedmath.org » Join the initiative for modernizing math education.

Simple versus Compound Interest