Albert Einstein is famously quoted for saying that "Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn't, pays it". Thankfully none of us need to be Albert Einstein to understand the rather simple and yet powerful concept of Compound Interest. There are a lot of compound interest calculators out there. I particularly like the Compound Interest Calculator from Investor.gov. The main reason I like this calculator is that it allows you to include Monthly Contributions, which if you are a serious investor, should be part of your strategy. Let's take a look at how it works. First, you need to enter some general information such as starting amount, monthly contribution, length of time and estimated interest rate. For this example, I will use the numbers below:
Compound Interest Calculator with Contribution
Labels:
Finance,
Fun,
Mathematics
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