Albert Einstein was born today in 1879. He is credited with saying, “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Compound interest is the difference between taking what appears to be the larger sum versus investing in something that grows exponentially. It’s often explained with the following example:
Which is the greater investment, $1m or 1 penny doubled every day for a month? At face value, $1m might seem like the answer, but it is not. A single penny doubled every day for days adds up to $5,368,709.12. That’s huge! Investing early in opportunities that offer exponential growth turn the tables, making you the earner.
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