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Visualizing The Extraordinary Power Of Compound Interest

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

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

Visualizing The Extraordinary Power Of Compound Interest

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What is Compound Interest?

Simply put, it’s interest on interest.

In the first compounding period, that interest is small – but in the long run, interest on interest is a big deal!

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

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Article by Wealth 101