Power of Compound Interest

What It Is:

Earning interest on interest — the engine that makes long-term investing powerful.

Tip:

Example:

$10,000 at 7% AER becomes ~$19,671 in 10 years and ~$38,697 in 20 years.

FAQs:

Does compound interest work for debt too?

Yes — compound interest makes debt grow faster. That's why high-interest debt is harmful.