What Is Compound Interest? Explained
Compound interest is, in short, the interest accumulated on interest. For instance, you have a £10,000 investment with a 10% return. The £1,000 return you then have goes back into the investment so next time you have a 10% return on £11,000 which is £1,100. When you look at it like this is not very complicated at all. You invest your returns back into the investment and the returns increase.