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Compound Interest Magic Explained
Einstein called compound interest the eighth wonder of the world. Simple interest is like a flat line; compound interest curves upward exponentially. Imagine rolling a tiny snowball down a hill. It picks up more snow as it goes. If you invest $100 at 10% interest, next year you have $110. Now you earn 10% on that $110, not just your original $100. The secret? Time. Starting early makes the curve steeper.
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Einstein called compound interest the eighth wonder of the world. Simple interest is like a flat line; compound interest curves upward exponentially. Imagine rolling a tiny snowball down a hill. It picks up more snow as it goes. If you invest $100 at 10% interest, next year you have $110. Now you earn 10% on that $110, not just your original $100. The secret? Time. Starting early makes the curve steeper.
