“Compound Interest Is The Eighth Wonder Of The World’
Let me start with a description of what is “Power of Compound” all about…
Suppose you invest your money and make returns on it. The compound takes effect when you reinvest the interest rather than take it as a payout.
This means that interest in the next period is earned not only on the principal sum but also on any interest that was previously accumulated.
Imagine, you invested $1 and received a 10% return per day. The start of the next day, you would then have a $1.10. Now that $0.10 doesn’t look much in the scheme of things.
But the magical element of compounding is the effect of time.
Here is another fun video explanation prepared by Tony Robbins of...