MAGIC OF COMPOUND INTEREST

The Magic of Compound Interest: Turning Time into Wealth 💧Understanding the Foundations of Compound Interest What Is Compound Interest? Compound interest is the process where interest is added to the initial principal, and then future interest is earned on the new, larger amount. Unlike simple interest, where the interest is only calculated on the principal, compound interest allows your investment to grow at an accelerating rate. Over time, this small change creates an enormous difference in wealth accumulation, especially when consistent contributions and reinvestment are involved. Understanding compound interest is the cornerstone of mastering financial literacy. Whether applied to savings accounts, investment portfolios, or retirement funds, compound interest acts as a financial multiplier. It transforms passive savings into dynamic growth, illustrating the power of letting time and patience amplify even modest contributions into substantial financial assets. The Mathematica...