Term
Compound interest
Interest earned on your money and on the interest it already produced. It grows slowly at first and then accelerates; it works the same way against you on a credit card.
In pesos: $10,000 MXN at 10% compounded yearly is about $67,000 after 20 years, more than double the simple-interest version.
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.