You may like to read about Compound Interest first. You can skip straight down to Periodic Compounding . Quick Explanation of Compound Interest With Compound Interest , you work out the interest for the first period, add it to the total, and then calculate the interest for the next period, and so on ..., like this: But adding 10% interest is the same as multiplying by 1.10 (explained here ) Compound Interest - Periodic Compounding
Less Wrong: Top scoring articles Following Morality is Awesome . Related: Logical Pinpointing , VNM . The eternal question, with a quantitative edge: A wizard has turned you into a whale, how awesome is this? "10.3 Awesomes" Meditation: What does that mean? Does that mean it's desirable?