Understand what compound interest is and the basic mechanics of how it works.
Explore how compound interest compares to simple interest and the difference it can make for your investment.
Explore how tax and inflation can affect your compounding investment.
Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
If you are planning to invest over a long period of time, then you may want to understand how compounding works. Compound interest doesn’t just allow you to earn interest on your initial capital, but also on the interest you have already earned. So over time you will be earning interest upon interest, upon interest. Welcome to the amazing world of compounding!