3/02/2011 05:31:00 PM

What is compound interest?

The power of Compound interest is what makes the stock market the best investment strategy out there. Compound interest is the process of making continuous small percentage gains off of your money. These small gains turn into larger gains over time.
For example if you invested $10,000 at 30% a year for 20 years you would have made $1,900,496. All this money would have come from that little investment of $10,000. That is the power of the stock market. If you take the time to learn how to trade well how many millions of dollars could it mean for you?

The power of compound interest gets even greater if you add money to your account consistently too. Let’s say that not only did you invest $10,000 at 30% interest for 20 year, you also added $5,000 a year to your account. Now you would have made $5,996,571. Again this came from your original $10,000.

Sounds too good to be true? It's true, that’s the great part. Why do you think the richest man in the world today is a stock investor? Because compound interest works.

Einstein once said “The most powerful force in the universe is compound interest”. Isn’t that a force we should all have working for us. Yes!

Here is a free compound interest calculator. Play around with it.