WHAT IS COMPOUND INTEREST?
Simply put, it’s interest from interest. The snowball effect.
In the first few compounding periods, the interest is minimal – but over time, interest from interest is a game changer!
How interest compounds depends on three variables:
Interest Rate: The rate earned from savings or an investment
Time: The length of time money is left to compound
Taxes: The timing of taxation can make a big difference
Check out the infographic below to learn more.