Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
Terms to familiar yourself with:
Principle [P] - The initial sum of money to calculate the interest on, also commonly known as the amount borrowed.
Interest Rate [r] - The percentage of the principle that will be paid as an interest in a certain time period.
Time [t] - Regular-spaced time intervals to collect interest.
Compound Interest includes interest on interest already paid or changed.
Compound Interest Formula: I = P(1+(r/100)^t - P
how the formula is derived: