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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The longer you invest the faster your investment grows.
10% interest on $100 doesn’t give you +$10 per year because compound interest keeps applying.
Year 1 turns $100 to $110 (+10)
Year 2 turns $110 to $121 (+11)
Year 3 turns $121 to $133.1 (+12.1)
Even though you haven’t put any more money in than the initial $100
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