Big Sean, Drake, and Kanye taught us about #blessings on #blessings on #blessings, but the world might be better off if their song had taught us about compound interest, which earns #interest on #interest on #interest and can rapidly multiply the returns on your investments.
Urban legend has it that even Albert Einstein was a fan. The renowned genius has been credited with describing compound interest as “the greatest invention of all” (perhaps apocryphally). Who needs the laws of physics when you have the marvels of saving.
At its simplest, you invest $100 and earn an annual return of 10% for three years. It grows to $133.10 (not $130) because $100 becomes $110, which grows to $121 with 10% added. It reaches $133.10 after a final 10% is added.
The wonder of interest on interest. Interesting.