Compound interest is often called the "eighth wonder of the world" by financial experts. It's the process where your investment earns interest, and then that interest earns interest on itself, creating a snowball effect of growth over time.
Compound interest is a powerful financial concept that can significantly impact your long-term investment growth. Here's how it works:
Let's say you invest $10,000 at a 7% annual interest rate, compounded monthly:
The earlier you start investing, the more time compound interest has to work in your favor.
Adding regular contributions to your investment can significantly boost your returns over time.
Reinvesting dividends and interest payments can accelerate your investment growth.
This calculator is for educational purposes only. Investment returns are not guaranteed and may vary based on market conditions. Past performance is not indicative of future results. Please consult with a financial advisor before making investment decisions.