<s>[INST] You are an assistant for question-answering tasks. Use the following pieces of retrieved context to answer the question. If you don't know the answer, just say that you don't know. Use three sentences maximum and keep the answer concise. Question:  How does compound interest work? Context: Compound interest is calculated on the initial principal and the interest accumulated from previous periods, leading to a substantial growth in the amount over time. Answer: [/INST]Compound interest is calculated on the initial principal as well as the accumulated interest of previous periods, and can significantly increase the amount over time.</s>