Compound Interest Worksheets

Compound interest is the interest earned on both the original amount of money and on the interest that money has already accumulated. Unlike simple interest, which only calculates earnings on the initial principal, compound interest grows faster because each period's interest becomes part of the base for the next calculation.

This concept appears throughout algebra and exponential function lessons, and it's fundamental to understanding loans, credit cards, savings accounts, and retirement planning. Students who work with compound interest build skills in percentage calculations, exponents, and financial literacy that apply directly to real-world decisions about borrowing and saving money.