Unlocking wealth with Compound Interest
Compound interest makes your money grow faster because interest is calculated on both the initial principal and the accumulated interest from previous periods. Over long periods, this creates a massive snowball effect on your wealth.
Core Math/Formula: A = P(1 + r/n)^(nt)
Common FAQs
Why does compounding frequency matter?
The more frequently interest is added to your principal (e.g., daily instead of annually), the faster your wealth multiplies because you begin earning "interest on the interest" much sooner.
How long does it take to double my money?
You can use the Rule of 72 to estimate this. Simply divide 72 by your annual interest rate. For example, at an 8% return, your money doubles in approximately 9 years.