Albert Einstein Explained Compound Interest
Do you know Albert Einstein explained compound interest? Albert Einstein once said “compound interest is man’s greatest invention”. Albert Einstein Physicist and a Scientist. He was born on March 14, 1879 in Germany and died on April 18, 1955 in Princetom new Jersey. He studied at Luitpold Gymnasium, Eidgenossische Polytechnische Schule (Swiss Federal Polytechnic School). He is well known scientist and most influential man in the world during 20th century. Popular on the theory of relativity.
Well, Compound-Interest.Net is not a science or physics blog it is a personal finance blog. Just want you to know who is Albert Einstein, I know you heard about him many times especially during your elementary and high school days.
Albert Einstein Explained Compound Interest
He said “compound interest is man’s greatest invention”. The question is who’s that specific man invested “compound interest”. No one, it’s a mathematical law, I think.
Rich people are getting benefits in compounding interest while poor people are taking the disadvantage of compound interest. How? Rich people multiply their wealth. They invest their money and reinvest their profits. While poor people use compound interest in credit cards not in business or investing. This simply means, rich people increase their assets and poor people increase their liabilities.
Compound interest is a great invention. That’s true. I know about it because I am taking its advantage. I invest in stocks, mutual funds and trust accounts. When in investing in these types of paper assets, your profits will reinvest automatically.
Compound Interest Really Work
I will give you an amazing example of how does compound interest work. If you will invest $100,000 today that earns 10% every year, your money will turn into two million and eight hundred ten thousand dollars ($2,810,243.68 to be exact) after 35 years.
See, that’s the power of compound interest. Even though you’re not genius as Albert Einstein, you can easily understand how it works! As you have noticed, the more years your money will stay invested the more profits gained through compounding interest.