The Magic of Compound Interest
Albert Einstein reportedly called compound interest the "eighth wonder of the world." When your interest earns interest, growth becomes exponential. $10,000 at 7% becomes $76,123 in 30 years — without adding a penny.
How Compounding Frequency Matters
Monthly compounding earns slightly more than annual. $10,000 at 7% annually = $19,672 after 10 years. Monthly = $20,097. The difference grows with larger amounts and longer time periods.