Question

How does compound interest work on investments

Answer 1

Basically, compound interest is how your money makes money on your behalf. If you invest, it means you not only earn a return on the initial amount of your investment, but also earn a return on your earnings. On the flip side, though, it also means that if you borrow money, you're charged interest on your interest.

Answer 2

Answer:

the interest compounds at a higher rate thus making a good profit

Explanation: