Compound interest model with annual deposits
What is Compound Interest?¶
Compound interest is a special type of loan, deposit or a saving account. After each compound period the interest is reinvested rather than paid. Compound interest of each period is based on both principal and reinvested interests from previous periods. Basically it's "interest on interest" https://en.wikipedia.org/wiki/Compound_interest
Instead of using formulas to get the final value the model simulates all time steps to get historical data.
from iframer import * iframer('https://statsim.com/app/?m=compound&preview=1')