Visualize the extraordinary power of compound interest

The power of compound interest is so compelling that it has often been called the “eighth wonder of the world”.

Play quizzes 4

Get the Timeless Reading eBook in PDF

Get the complete 10-part series on timeless reading in PDF. Save it to your desktop, read it on your tablet, or email it to co-workers.

See the 2017 Letters on Hedge Funds.

Find out why this concept is so fundamental to personal finance in the following infographic:

ADW Capital presents theses for PAR Technology, RCI Hospitality and CDON

ESG Investing Léon CoopermanLike most other hedge funds, ADW Capital was in the red in the first quarter, returning -27.34%. The S&P 500 was down 4.6% in the first three months of the year, while the Russell 2000 was down 7.53% and the Russell 2000 Value Index was down 2.4%. Since its creation in 2011, ADW Capital Read more

Visualize the extraordinary power of compound interest

Think you already know how to use and calculate compound interest?

Check out this exercise created by Next Gen Personal Finance and see how you do. There are also many other free personal finance lessons available in the activities section of their website.

What is compound interest?

In other words, it is interest on interest.

In the first period of capitalization, this interest is low – but in the long term, interest on interest is a big problem!

The composition of interest depends on three variables:

Interest rate: The rate drawn from savings or an investment

Time: The time left for money to accumulate

Taxes: Timing of taxation can make a big difference

Learn more

Get free personal finance lesson plans and resources from our co-founder Next Gen Personal Finance.

Be the first to see all future personal finance infographics by signing up to Visual Capitalist’s free mailing list.

Wealth 101 Article

Comments are closed.