I don’t understand it like at all. I’ve heard it’s beneficial moneywise but I don’t understand why or how to invest in compounds??
Reading online it seems that it’s beneficial however that’s all I seem to understand so if it is something to look into and invest in I’d like to Understand it better 🙂
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If you are thinking about investing for retirement, then it’s not “compound interest” but rather “compound growth.” The idea is exactly the same as the interest examples you are getting, but you won’t find something to invest in that gives interest directly.
The idea is just that if a stock grows 10% one year and 10% again the next year, then the second year’s growth is ***11%*** of the first year’s price. This is because in the first year it goes from 100% to 110% (+10% of 100%) and in the second year it goes from 110% to 121% (+10% of 110%).
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