Compound interest is calculated...

[Anon Oby]

"Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one."

Source: The Power of Compound Interest: Calculations and Examples from Investopedia

I just came across this sentence online. I guess it is about the method used to calculate compound interest, but I'm not sure what it means.

 

[Anon Oby]

"Libraries made education possible, and education in its turn added to libraries: the growth of knowledge followed by a kind of compound-interest law, which was greatly enhanced by the invention of printing."

Source: The Personality of Man by G. N. M. Tyrrell

I'd say this 'law' is some big achievement in the human history, yet I'm not quite firm about it. Maybe it's a figurative way to express the tendency of knowledge accumulation?

 

[probus]

It is hard to express mathematical concepts without using mathematical notation. If i is the annual interest on $1, then after n years a dollar will have grown to (1 + i) raised to the nth power. Does that help you?

 

[teechar]

I just ran into this sentence online.

"Ran into" is used for when you encounter people. Say, for example:
I (just) found/saw/came across this sentence online.

Source: The Power of Compound Interest: Calculations and Examples from Investopedia

Please always provide the link for online resources.

I'm not sure what it means.

That site actually gives a detailed explanation, the formula, and examples of how to calculate it. Did you not see that?

The Power of Compound Interest: Calculations and Examples

Compound interest is interest that applies not only to the initial principal of an investment or a loan, but also to the accumulated interest from previous periods.

www.investopedia.com

 

[teechar]

I'd say this 'law' is some big achievement in the human history, yet I'm not quite firm sure about that. it. Maybe it's a figurative way to express the tendency of say that human knowledge grows at a great rate. accumulation?

Yes. That's what it's saying. Compound interest is higher than simple interest. With compound interest, you earn interest on the original investment as well as on subsequent interest you accumulate during the investment period.

 

[teechar]

Note that I have merged your threads.
In future, please DO NOT start more than one thread to ask about the same point or topic.

 

[Tarheel]

It is hard to express mathematical concepts without using mathematical notation. If i is the annual interest on $1, then after n years a dollar will have grown to (1 + i) raised to the nth power. Does that help you?

Not much.

 

[Tarheel]

It's a big achievement in human history. (No "the" there.)

Say:

the method used to calculate compound interest. (No "the" there.)