The ‘eighth wonder’ of the world
Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.
Albert Einstein
COMPOUNDING IS one of the most important concepts in investing and saving, and must be fully understood to ensure high growth and sustainable returns. It sounds very impressive, but what does the term really mean, and how does it affect you as an investor and saver?
Simply put, compounding is what happens when you take a number and increase that number repeatedly by a percentage. Each time you do so, …