The power of compound interest in the stock market
According to Einstein, “Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”
So what is compound interest
Compound interest (also known as compounding interest) is simply understood as the interest on a deposit calculated based on both the initial principal and the accumulated interest from previous periods. The more principal deposited, the greater interest generated in the following periods.
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