Compound interest

These 3 charts show the amazing power of compound interest

Retired basketball legend Michael Jordan has made the most of his life after the court. Isaac Brekken / Stringer / Getty Images One of the biggest financial benefits available is one that anyone can access by opening a simple retirement account: compound interest . Retirement accounts like 401 (k) s and Roth IRAs aren’t just […]

Compound interest

How Compound Interest Affects Retirement Funds

JP Morgan Fund In the good old days, young Americans would go to work for an employer that promised them a comfortable retirement in the form of a pension plan, that is, a defined benefit plan. Today, it is increasingly the worker’s responsibility to put money aside for retirement in the form of a 401 […]

Compound interest

Compound interest: formula and definition

Compound interest is the interest that accumulates on the original principal and the interest accrued on a principal deposit, loan or debt. Interest is the fee paid by borrowers for the use of the owner’s assets. It applies to loans, credit cards and other debts, as well as bank accounts. Banks pay interest to the […]

Compound interest

Compound interest and credit card debt

xJasonRogersx Part III – Compound interest and consumer debt Please see previous posts Part I – Why don’t they teach this in school And Part II –Compound interest and wealth So in the last post I wrote about the amazing power of compound interest and the possibility it suggests about wealth creation over time. Unfortunately, […]

Compound interest

10 Things You Should Know About Compound Interest My money

When Benjamin Franklin died in 1790, he left $ 5,000 each to the cities of Boston and Philadelphia. Each city was to create a fund that would last 200 years. The needy could borrow from the fund at an interest rate of 5%. After 100 years, each city could withdraw $ 500,000 from the fund, […]

Compound interest

Compound interest is great, but there’s a catch

One of the first topics covered in almost every personal finance book you read is the power of compound interest. Compound Interest 101 You can skip this section if you are already familiar with compound interest and how it works. I’m including it for people new to the idea. Let’s say you have access to […]