Term
Compounding period
How often interest is added to the balance so it starts earning interest itself: yearly, monthly, daily. More often means slightly faster growth.
In pesos: $1,000 MXN a month at 8% compounded monthly for 20 years ends near $589,000, of which $240,000 came from you.
Where to go deeper
2/4 5 min Read Simple vs. compound interest What compound interest actually is, why time matters more than the amount you start with, and how the same force works against you on a credit card.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.