Interest Formula

Compound Interest in Commercial Real Estate

Compound Interest in Commercial Real Estate

Compound Interest, sometimes called "compounding interest", is when interest is added to the principal amount after each period, and the next recurring interest calculation includes the principal along with the accumulated interest. Because of this, Compound interest is often referred to as "interest on interest". As opposed to simple interest, where interest is only calculated using the principal, compound interest can make a sum grow exponentially.