LOADING
Interest calculated on both the initial principal and the accumulated interest from previous periods.
Albert Einstein reportedly called compound interest the "eighth wonder of the world." The power of compounding means your money grows exponentially rather than linearly. For example, $10,000 invested at 8% annually becomes $21,589 in 10 years, $46,610 in 20 years, and $100,627 in 30 years. The Rule of 72 provides a quick estimate: divide 72 by the annual return to find how many years it takes to double your money (72 / 8 = 9 years). Starting early is the single most powerful advantage in investing because of compounding.