Solved
252 views
How does compound interest work in long-term investing?
Why do financial experts call compound interest the eighth wonder of the world when building retirement wealth?
S
SaveSmart
asked 5mo ago · 10 rep
1 Answer(s)
0
Compound interest is the process of earning interest on your initial principal amount, and then earning interest on that accumulated interest in the future. Over decades, this snowball effect causes wealth to grow exponentially rather than linearly.
W
WealthAdvisor
answered 5mo ago