Johan Pehrson

Tomas Oneborg/SvD/TT / TT NYHETSBYRÅN

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Unibet

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Bitcoin har ökat dramatiskt i värde de senaste månaderna, efter det att tunga investerare köpt stora summor av den digitala valutan. Nu beskrivs utvecklingen som ett möjligt trendbrott. Är Bitcoin här för att stanna? Vad är egentligen en kryptovaluta och vilka risker innebär den? I studion: Johan Javeus, chefstrateg SEB, Erik Wisterberg, journalist, och Gina Pari, bitcoinexpert. Programledare: Carolina Neurath. Del 9 av 14.

Patrik Jäverbo

Almi

Almi Partner

Dicot

Dicot Partner

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest. Compound interest is standard in finance and economics.
Compound interest is contrasted with simple interest, where previously accumulated  interest is not added to the principal amount of the current period, so there is no compounding. The simple annual interest rate is the interest amount per period, multiplied by the number of periods per year. The simple annual interest rate is also known as the nominal interest rate (not to be confused with the interest rate not adjusted for inflation, which goes by the same name).

Compound interest

Richard Drew / TT NYHETSBYRÅN

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