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📊 Today's Finance Term: Compound Interest
Think of compound interest as money making money! 💰🏦 You earn interest, and then that interest *also* earns interest. It's like a snowball effect, making your savings grow faster over time! 📈
💡 Example: Let's say you invest $1,000 💵 in a Certificate of Deposit (CD) at a bank 🏦 with a 5% annual interest rate that compounds annually. After one year, you earn $50. The next year, you earn 5% on $1,050, which is $52.50. Over 30 years, that initial $1,000 could grow to over $4,321 due to compounding! 📈
🎯 Did You Know?: Albert Einstein supposedly called compound interest the "eighth wonder of the world." 🤯 While there's no solid proof he actually said it, the sentiment rings true: small amounts can turn into fortunes over time! 💰
Current streak: 🔥 1 days
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