“As the frequency of conversion periods in a year increases, the larger the compound interest, and so,

is the compound amount. “

Based on my understanding, when people make a loan to purchase a product or for things that can be
promised to pay, such as vehicle loans, house loans, or even investment loans, each cycle accumulates
the principal amount plus interest. As a result, because the principal value is compounded based on the
percentage rate a loan should have, it will be doubled. Compounded interest has two key users: the
borrower and the investor. As per real-life situations, the simple interest is the preferred option for a
borrower since it is easier to pay, but the compound interest is the recommended option for investors
because it doubles the money or might be more. Simple interest is easy to quantify as a result of this,
although it has a small amount of interest. Compound interest, on the other hand, has the ability to
develop fast. When it comes to the business sector, whether it's an investment or a debt, it will have an
impact on a company's finances. Applying the concepts of compound interest to the life we’re living
today, growth will eventually be into us but it is also us to decide whether we are capable of working it
out to have a fast progress or being contented of what we currently have. It might be developments
through educational attainments, in job employments or even to improve ourselves in every aspect in
life. Above all, compound interest gives us the enlightenment as a student that if we invest more
knowledge practically, we will earn more than that.