Albert Einstein was once quoted saying that the 8th wonder of the world is Compound Interest.We were taught in school that compounding makes a value doubles and triples faster.The same goes with money.The table below shows how this can be possible.
A $10000 initial amount can turn into a whopping $100000 in 25 years at 10% compound interest per annum!
That's tenfold.You may take out your financial calculators if you are doubting this table.
How can this happen?During the initial years, the investment moves very slowly.However, it starts to go parabolic the moment it reaches a six-figure sum.
Food For Thought.Happy weekend.
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