The Power of Compound Interest: The 8th Wonder of the World
Compound interest is interest on interest — a snowball that accelerates over time.
A Simple Example
Invest $1,000 at 10%: $1,100 → $1,210 → $1,331 ...
Two Most Important Ingredients
- Time — start early.
- Rate of Return — favor productive assets long-term.
Rule of 72
72 / rate ≈ years to double (e.g., 72/9% ≈ 8 years).