Explain the concept of compound interest with an example.

Compound interest is earning interest not just on the original amount but on accumulated interest from previous years. For example, if you deposit ₹1,000 at 6% annual interest, after one year you have ₹1,060. In the second year, you earn interest on ₹1,060, not just ₹1,000, giving you ₹1,123.60. This compounding process helps money grow exponentially over time, turning small savings into substantial amounts.