MANAGEMENT

Detailed explanation-1: -Translated: compound interest is “interest on interest.” Compound interest will make your money grow much faster than if you received interest only on the principal amount, which is called “simple interest.”

Detailed explanation-2: -When it comes to investing, compound interest is better since it allows funds to grow at a faster rate than they would in an account with a simple interest rate.

Detailed explanation-3: -History’s most famous scientist – Albert Einstein-is said to have once described compound interest as the most powerful force in the universe. He is also meant to have called compound interest the ‘8th wonder of the world’.

Detailed explanation-4: -Compound interest causes your wealth to grow faster. It makes a sum of money grow at a faster rate than simple interest because you will earn returns on the money you invest, as well as on returns at the end of every compounding period. This means that you don’t have to put away as much money to reach your goals!