The Most Powerful Force in the Universe: Compound Interest - Finance Hack
37Albert Einstein once said "Compound Interest is The Most Powerful Force in The Universe." Here's why. Compound interest is interest that is calculated not only on the principal amount but also on the accumulated interest from previous periods. This means that over time, the amount of interest earned grows exponentially, rather than linearly. So over a long period of time, even small amounts of money can grow large. By investing early and allowing your money to compound over time, you can benefit from exponential growth and earn more. For example, if you invest $1,000 with a 10% annual interest rate, after one year you'll earn $100 in interest. But with compound interest, in the second year, you'll earn $110 in interest. Over time, this compounding effect can result in significant growth in your investments. Subscribe for more finance tips and hacks! #shorts