Question 1

How does compound interest differ from simple interest?

Accepted Answer

With simple interest, income is earned only on the initial capital. With compound interest, each period's earnings are added to the principal and begin earning income themselves. Over long horizons the difference is enormous.

Question 2

What is the Rule of 72?

Accepted Answer

A quick way to estimate how many years it takes to double your capital: divide 72 by the annual rate. At 12% per year — 72 / 12 = 6 years. The rule works for rates between 6% and 20%.

Question 3

What is CAGR?

Accepted Answer

CAGR (Compound Annual Growth Rate) is the average annual growth rate with compounding. It shows what a steady annual rate would have produced the same result over the same period. Useful for comparing investments with different histories.

Question 4

Why account for inflation?

Accepted Answer

A nominal future amount is worth less due to inflation. Real value (in today's prices) shows how much your purchasing power actually grows. For example, 10M in 10 years at 10% inflation is only ~3.8M in today's money.

Question 5

How often should I top up the account?

Accepted Answer

The calculator uses monthly contributions. The main rule: regularity matters more than size. Even small but regular monthly contributions over 10–20 years have an enormous effect through reinvestment.

Year	Contributions	Growth	Balance
1	15 500 000 UZS	+2 037 726 UZS	17 537 726 UZS
2	6 000 000 UZS	+3 329 827 UZS	26 867 553 UZS
3	6 000 000 UZS	+4 829 638 UZS	37 697 191 UZS
4	6 000 000 UZS	+6 570 552 UZS	50 267 743 UZS
5	6 000 000 UZS	+8 591 325 UZS	64 859 067 UZS

Compound Interest Calculator

Why Compound Interest Is Called the Eighth Wonder of the World

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