04 Try it yourself Interactive

Watch the base move

Pick a principal, a rate, a time and a compounding frequency. Each step charges interest on the balance at the start of that period, so you can see the interest figure rise period by period. The bottom line always compares against what simple interest would have given.

₹1,000 at 10% for 2 years, annually
A 1,210 · CI 210
Change the frequency and watch the amount rise even though the yearly rate is unchanged — more frequent compounding means more occasions for interest to earn interest.
Press Next to work through it one step at a time.
Rate / period
Periods
Interest
Balance
step 0 / 0