Eli5: Compound interest?

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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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Anonymous 0 Comments

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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