Compound Interest Calculator

A bond is a type of debt security where an investor lends money to an entity, such as a corporation or government, for a specified period of time at a fixed or variable interest rate. In return, the issuer of the bond agrees to pay back the principal amount (the face value of the bond) at the end of the bond's term, known as the maturity date, along with regular interest payments, known as coupon payments, throughout the life of the bond.

A Certificate of Deposit (CD) is a type of savings account offered by banks and credit unions that provides a fixed interest rate in exchange for the investor agreeing to deposit their money for a predetermined period of time, known as the term length. The term can range from a few months to several years. In return for this commitment, the investor typically receives a higher interest rate compared to a regular savings account. At the end of the term, the investor can withdraw their original deposit along with the earned interest. Early withdrawal may result in penalties.

An Exchange-Traded Fund (ETF) is a type of investment fund that is traded on stock exchanges, similar to individual stocks. It holds a collection of assets, such as stocks, bonds, or commodities, and aims to track the performance of a specific index or sector. ETFs offer investors a way to diversify their portfolio with a single investment, and they can be bought or sold throughout the trading day at market prices. Unlike mutual funds, which are priced at the end of the trading day, ETFs are more flexible and liquid, allowing investors to trade them like regular stocks.

A mutual fund is an investment vehicle that pools money from many investors to invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professional portfolio managers, mutual funds allow individual investors to access a broad range of assets without having to buy each one individually. Investors in mutual funds own shares of the fund, and the value of their shares fluctuates based on the performance of the fund’s holdings. Mutual funds are typically priced at the end of each trading day, and they offer diversification, professional management, and the potential for long-term growth.

Real estate refers to property consisting of land and the buildings or structures on it, along with its natural resources like crops, minerals, or water. It can be categorized into residential, commercial, industrial, and agricultural properties. Real estate can be bought, sold, rented, or leased, and it often serves as an investment for income generation or capital appreciation. The value of real estate is influenced by factors such as location, market trends, economic conditions, and property features.

Stocks, also known as shares or equity, represent ownership in a company. When you purchase stock, you buy a small part of that company, and you become a shareholder. Stocks allow investors to participate in the company's growth and profits through dividends (if paid) and capital appreciation (increase in the stock’s value). There are two main types of stocks: common stock, which gives voting rights at shareholder meetings and a share in the company’s profits, and preferred stock, which typically offers fixed dividends but no voting rights. The value of stocks fluctuates based on the company’s performance and market conditions.