Compounding is the interest on interest

The increasing value of an asset due to the interest earned on both a principal and accumulated interest

Basically, compounding is interest on interest, allowing returns to increase exponentially over time.

$$DM=\frac{72}{rate}$$

$DM$ is the number of years to double money. Then:

$$FV=PV\times 2^n$$

where:

• $n$ is $time/DM$ (time is the wanted time frame)

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flashcards/personal-finance

What is compounding?::Interest on interest

How to calculate the number of years to double your money?::72/rate

How to calculate the final money given the number of year to double the money and the years wanted?::PV times 2