The world of personal finance can often feel like a labyrinth of accounts, terms, and regulations. One of the most commonly discussed retirement accounts in
Compound interest is a financial marvel that allows your money to grow exponentially over time. Unlike simple interest, which only applies to the initial principal amount, compound interest takes into account both the principal and any interest earned in previous periods. As each period passes, the interest is added to the principal, leading to a snowball effect of growth. This compounding phenomenon can significantly boost investment returns and is considered one of the most potent tools for long-term wealth accumulation.
