Financial maths · Years 8–10

Interest Time Machine

See how compounding turns repeated percentage growth into a curve.

Compound balance$1,791+$791 earned
Simple balance$1,600+$600 earned
Compounding bonus+$191above simple interest
Balance over timeA = 1000(1 + 0.06)¹⁰
CompoundSimple
Balance over time chart A graph comparing compound and simple interest balances over the selected number of years.
Balance
Years
↗

The gap accelerates. Interest earns interest, so the same percentage adds more money each year.

Check your understanding

Predict the compound balance before revealing it.