What is compound interest

The video tutorial introduces compound interest, explaining the concept of making an initial deposit and earning interest on both the principal and previously earned interest. It covers key components such as the principal amount, annual rate of return, compounding frequency, and time period. The tutorial also provides a detailed explanation of the compound interest formula, emphasizing how to calculate the final value of an investment over time.

How does the frequency of compounding affect the final amount in compound interest?

Describe the formula for calculating compound interest.