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**Coming back to**** compound value concept:**

Assuming that your school has given you the definition of what compound interest is, we will revise the idea with an example here.

Take for instance;

A man borrows $3000 with a 10% annual interest for 3 years. He doesn’t want to make regular repayments and hence, needs to calculate the total figure. Here’s how:

- For the 1
^{st}year, the interest would be ($3000 x 10%) $300. So, total for the same year would be $3300. - For the next year, 10% interest would be calculated on $3300. This results in ($3300 x 10% = $330) $3630 for the 2
^{nd} - For the last year, again, 10% interest would be on $3630 which results in ($3630 x 10% = $363) $3993

Hence, the total interest for 3 years would be ($300 + $330 + $363) $993. And the repayment figure would be $3993. This is the concept of compound value.

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Compound value can turn dollars into big money!

**Facts about compound value you should know**

It is important for every learner to know the benefits of compound valuefor financial success. In the course of time, this concept of mathematics can transform a few dollars into big amounts. We’ll explain how, once you avail our **compoundvalue concept homework help** service.

We’ll share with you some of the interesting facts that your professor didn’t tell you.

- This is the method that banks use to calculate new interests.
- Remember, compound value concept is like a double edged sword. It can be cruel if one starts borrowing money. It would benefit in saving money regularly.
- Compound interest adds money quite faster in your bank account.
- It is said that time will remain by your side with this math’s theory.

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