The Exponential Growth of Compound Interest – Chart
The exponential growth of compounding interest is one of, if not the most powerful formula in finance. Compound growth calculates the amount of gains earned based upon the added results from the previous period. Interest earned on the investment continuously reinvested to generate constant earnings. Over long period of time, this compounding leads to the exponential growth of your initial capital. This financial concept allow investors to earn significant sums with little money. Look at the calculation on the compound interest chart below and find out how it can increase your savings and help you retire sooner. See also How a Physical Gold IRA Can Protect Your Wealth and the Benefits of Investing In Mutual Funds.