Ever been confused by compound interest?
Here's what it means and how you can use it to get rich.
There's this urban legend that Albert Einstein said, compound interest is the eighth wonder of the world.
He who understands it, earns it.
He who doesn't understand it, pays it.
So there's no actual evidence that Einstein ever said that, but that doesn't mean it's not true.
In short, compound interest is interest on interest.
In other words, you get interest on the initial amount you put in, plus interest on the interest that has accumulated over time.
Let's say you invest $10,000 in a savings account with a 5% interest rate.
If that's simple interest, every year you're going to earn $500 in interest.
