What Is Compound Interest?

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The concept of compound interest has been around since early times of humanity, unofficially. This is due to lack of documentation and dating back to when agriculture was practiced by tribes and early civilizations. In the late 14th century, Italian mathematician were the first to use compound interest on record. By the 17th century, most financial institutions were using compound interest. However, problems began to arise with compound interest causing a need for simplification. Richard Witt solved this problem and created the compound interest people use today. Compound interest now aids us and is applied in many ways in our life. When humans trade amongst themselves, they use a form of interest, whether it is compound interest or simple interest; it is used in loans, credit cards, and when one saves and stores their money in a savings account. This form of interest can be displayed through a simple formula. Due to religious and mathematical reasons, resistance began to arise in the use of compound interest. It is interesting to understand how reluctant individuals were in history, but it is now widely used just like simple interest. It is crucial to understand how compound interest is used in daily life, in mathematics, and how it has developed.
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It is something that can be found from credit rates to the banks, interest rates, and plans. Despite the fact that most have little to no knowledge on this subject and because this concept is prominent in business transactions, more people should seek a greater understanding of compound interest. Learning about interest rates would benefit a person greatly as they would better understand what it takes to pay off their interest and debts on credit card and loans. They will also be able to better understand how to invest their money, and how to get the biggest profit and reward out of their
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