See how your principal grows exponentially over time with compound interest.
Compound interest is often referred to as the "eighth wonder of the world" because of its ability to exponentially grow wealth over time. Unlike simple interest, which only pays interest on the initial principal, compound interest pays interest on both the principal and the accumulated interest from previous periods.
The more frequently interest compounds (e.g., daily vs. annually), the faster your money grows. While the difference might seem small in the short term, over a span of decades, the increased frequency of compounding can result in thousands of additional dollars.